Forestar To Further Consider D.R. Horton Proposal, Which Could Be 'superior' To Starwood's Bid
Forestar Group Inc. said Thursday that D.R. Horton Inc.'s unsolicited bid to buy a 75% stake in the company could lead to a "superior proposal," as defined in its merger agreement with Starwood Capital Group. Forestar said that while it remains subject to the merger agreement with Starwood, the agreement allows Forestar to take certain actions to further consider D.R. Horton's bid, including participating in discussions or negotiations. The termination fee of the Starwood deal is $20 million. On April 13, Forestar agreed to be acquired by Starwood for $14.25 a share, but then received on June 5 a bid from D.R. Horton to buy 75% of the outstanding shares for $16.25 a share. Forestar's stock, which rallied 1% in premarket trade, has soared 19% year to date through Wednesday, while the S&P 500 has gained 8.7%.
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