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Starwood Ups the Ante in Forestar Bid

Forestar’s board continues to recommend a merger with Starwood Capital Group, while acknowledging that a counter-bid from D.R. Horton Inc. was potentially a “superior proposal.”

Photo of residential development Arrowhead Ranch in Dripping Springs, TX, one of 55 residential and mixed-use projects in which Forestar has an interest.

AUSTIN, TX—Forestar Group Inc. said Wednesday evening that it had amended its merger agreement with Starwood Capital Group to increase the merger consideration to $15.50 per share in cash. The amendment comes about two weeks after D.R. Horton Inc. made an unsolicited counter-offer to buy 75% of Forestar’s common stock for $16.25 per share.

Forestar said its board continues to view the DHI offer as potentially a “superior proposal” under terms of its merger agreement with Starwood. The original merger agreement, announced April 13, was valued at $14.25 per share in cash, or approximately $605 million.

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Paul Bubny

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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