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Forestar also said it was still subject to the agreement with
Starwood, which in April agreed to buy the Texas-based company
for $14.25 per share, or about $605 million.
D.R. Horton, the No. 1 U.S. homebuilder, on Monday offered to
buy 75 percent of Forestar for $16.25 per share, or about $520
million in cash.
Barry Sternlicht-led Starwood, an investment firm with a focus
on real estate, manages assets of more than $51 billion.
D.R. Horton's offer comes at a time when U.S. homebuilders are
seeking ways to boost their land holding as rising land
acquisition costs and a tight labor market hamper efforts to tap
the recovery in the housing market.
Forestar, which mainly develops lots and sells them to
homebuilders, owns interests in 50 residential and mixed-use
projects comprising 4,600 acres of real estate.
Under certain circumstances, Forestar has to pay Starwood $20
million if their deal is terminated.
Forestar's shares were marginally up at $16 in premarket
trading.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Sai
Sachin Ravikumar and Sriraj Kalluvila)
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