D.R. Horton Inc. entered into a confidentiality agreement with Forestar Group Inc to allow the companies to review D. R. Horton's unsolicited proposal to acquire 75% of Forestar's common stock for $16.25 per share.
Forestar in April signed a definitive merger deal with Starwood Capital Group, under which Starwood would acquire all of Forestar's outstanding shares for $14.25 apiece in a $605 million cash deal.
However, D. R. Horton's offer, valued at approximately $520 million, represents a 14% premium to Starwood's. Forestar's board agreed to review the offer, stating it could "reasonably be expected" to result in a superior proposal.