The controlling shareholder of William Lyon Homes announced Tuesday that he was withdrawing his proposal to take the company private, just one week after a special committee called his offer “inadequate.”

William Lyon, who owns a majority of the Newport Beach-based homebuilder’s stock, had offered to acquire the outstanding publicly held minority interest for $82 per share in cash.

Lyon said that while he remained interested in negotiating a transaction for the acquisition of the public’s shares, he did not intend to make a new bid at the company’s current stock trading levels. Shares of the company closed on Tuesday at $99.49 per share.

On June 21, the committee, made up of several board members, issued a short statement rejecting the offer made by Lyon to buy up stock not owned by him and trusts for the benefit of his son without explaining its reasoning or suggesting an appropriate buyout price. It said the proposal was reviewed with input from financial adviser Credit Suisse First Boston LLC, a unit of Credit Suisse Group, and the law firm of Skadden Arps Slate Meagher & Flom LLP of New York.

Lyon and other board members are being sued by minority shareholders in a class-action lawsuit alleging that his offering price is too low. The case is pending in the Court of Chancery of the State of Delaware.