A lawsuit was filed for investors in shares of Forestar Group Inc. (NYSE:FOR) in connection with the proposed takeover and NYSE:FOR stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/26/2017 -- The Shareholders Foundation announces that an investor, who currently holds shares of Forestar Group Inc. (NYSE:FOR), filed a lawsuit in effort to halt the proposed takeover of Forestar Group Inc. by affiliates of Starwood Capital Group.
Investors who purchased shares of Forestar Group Inc. (NYSE:FOR) and currently hold any of those NYSE:FOR shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:FOR stockholders by agreeing to sell Forestar Group Inc. cheaply via an unfair process to affiliates of Starwood Capital Group.
On April 13, 2017, Forestar Group Inc. (NYSE:FOR) announced that it has entered into a merger agreement with affiliates of Starwood Capital Group under which Starwood Capital Group will acquire all of the outstanding shares of common stock of the Company for $14.25 per share in cash.
Shareholders are scheduled to vote on the merger at a special meeting on July 7, 2017.
On June 5, 2017, Forestar Group Inc confirmed that on June 5, 2017 its board of directors received an unsolicited, nonbinding proposal from D.R. Horton, Inc. to acquire 75% of the outstanding shares of Forestar Group Inc common stock for $16.25 in cash.
However, plaintiff claims that the proposed consideration NYSE:FOR shareholders will receive with Starwood Capital Group offer is grossly inadequate and undervalues Forestar Group Inc. Indeed, at least one analyst has set the high target price for NYSE:FOR shares at $16.00 per share. Forestar Group Inc. reported that its annual Total Revenue declined from $218.58 million in 2015 to $197.31 million in 2016 and that its Net loss of $26.92 million in 2015 turned into a Net Income of $75.51 million in 2016. Shares of Forestar Group Inc. (NYSE:FOR) reached as high as $24.00 per share in 2013. In addition, the plaintiff alleges that the process is also unfair NYSE:FOR stockholders
On June 23, 2017, NYSE:FOR shares closed at $17.65 per share.
Those who are current investors in Forestar Group Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com