In this Sept. 16, 2010 photo, DR Horton homes are advertised at a construction site in Milpitas, Calif. D.R. Horton Inc. said Friday, Nov. 12, 2010, its loss narrowed in its fiscal fourth quarter, as the homebuilder took fewer writedowns on the value of its properties. (AP Photo/Paul Sakuma)
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.