D.R. Horton and Starwood Capital Group are both looking to acquire Austin-based land developer Forestar Group.
On Wednesday, June 21, Starwood upped its offer from $14.25 per share to $15.50 per share.
On Thursday, June 22, D.R. Horton, now based in Arlington, said it still considered its proposal to acquire 75 percent of Forestar for $16.25 per share in cash and to grow Forestar into a leading publicly-traded national land developer a better offer.
“We are confident that our proposal is superior to the amended agreement with Starwood and remain fully committed to closing a Forestar transaction in the best interests of both companies’ shareholders,” said Donald R. Horton, chairman of the board at D.R. Horton. “We have completed our due diligence and have submitted a fully negotiated Merger Agreement, Master Supply Agreement and Stockholder Agreement to the Forestar Board of Directors. We urge the Forestar Board to formally declare our proposal to be a ‘Superior Proposal,’ and to proceed to a definitive agreement with D.R. Horton and postpone the shareholder meeting scheduled for July 7, 2017.”
Moelis & Company is serving as financial advisor to D.R. Horton in connection with this proposal, and Gibson, Dunn & Crutcher LLP is serving as legal counsel.
