AUSTIN, TX—Stratus Properties Inc. said Thursday afternoon itsboard was reviewing an unsolicited proposal from CaprettaProperties Inc. to acquire substantially all of its real estateportfolio for $435 million in cash, with Stratus retaining itsdebt. The proposal is subject to several contingencies, includingCapretta's proposal that the closing be subject to satisfactory duediligence being completed.

Carl E. Berg, who controls 17.6% of Stratus' stock and claims tobe the company's largest shareholder, said Thursday he had receiveda copy of Capretta's letter to Stratus CEO William Armstrong, datedJan. 26. "To me, Capretta's offer appears to have significant meritand represents an excellent point from which to begin the processof exploring the sale of Stratus," according to Berg.

"I definitely agree that Stratus should not incur any brokeragefees in connection with selling its real estate portfolio inresponse to a third party's unsolicited offer to purchase Stratus'real estate assets," he adds. "After the Stratus shareholdershave endured years of underperformance by Stratus, theBoard—including its two recent board appointees, James Joseph andJohn Wenker—needs to seriously and objectively evaluate Capretta'soffer and any other offers that Stratus receives," with the goal ofallowing the company's stockholders "to realize the full value ofStratus' real estate portfolio."