Shares of Forestar Group Inc. rallied 5.2% in premarket trade Friday, after the land development company said it determined that D.R. Horton Inc.’s increased bid to buy 75% of the company was a “superior proposal” to its merger agreement with Starwood Capital Group. D.R. Horton had increased its bid to $17.75 a share in cash from its most-recent bid of $16.25 a share. Forestar also announced Friday that it had amended its merger deal with Starwood to increase the per-share bid to $16.00 a share in cash from the most-recent deal of $15.50 announced Wednesday, and up from the original bid of $14.25 a share. The termination fee of the Starwood deal is $20 million. Forestar said its agreement with Starwood permits Forestart to discuss the deal further through June 28. Forestar’s stock has rallied 24% year to date through Thursday, while D.R. Horton shares have climbed 22% and the S&P 500 has gained 8.7%.
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