(Reuters) - Forestar Group Inc (N:FOR) said on Thursday that U.S. homebuilder D.R. Horton Inc's (N:DHI) offer to buy a majority in the real estate developer could lead to a bid superior to its deal with Starwood Capital Group.
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.
