Forestar Group Inc. acknowledged the receipt of an unsolicited cash bid from D.R. Horton Inc. to buy 75% of its outstanding common shares for $16.25 per share.
The residential and mixed-use real estate developer said its board will review the nonbinding proposal promptly and carefully to identify the best course of action. It is not making any recommendation regarding D.R. Horton's offer and it is not guaranteed whether the proposal will result in a definitive deal, according to a release.
Forestar noted that it stands behind its recommendation to shareholders that they vote in favor of the company's roughly $605 million merger deal with Starwood Capital Group. Under that deal, Starwood agreed to buy all of Forestar's outstanding common shares for $14.25 per share in cash.
JMP Securities LLC is Forestar's financial adviser, while Skadden Arps Slate Meagher & Flom LLP is its legal adviser.