SAN DIEGO, April 14, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP (J&W) launched an investigation into whether the board members of Forestar Group Inc. (NYSE: FOR) breached their fiduciary duties in connection with the proposed sale of the Company to Starwood Capital Group. Forestar engages in the acquisition, entitlement, development, and sale of real estate, primarily residential and mixed-use communities.
On April 13, 2017, Forestar announced it had signed a definitive merger agreement with Starwood. Under the terms of the agreement, Starwood will acquire all of the outstanding shares of Forestar common stock for $14.25 per share in cash.
The investigation concerns whether the Forestar board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Forestar shares of common stock.
Given the Company's outlook for future earnings growth, Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration; according to Yahoo! Finance, at least one Wall Street analyst's estimated price target is $16.00 per share. The Company also has a strong balance sheet with over $250 million in cash.
If you are a shareholder of Forestar and believe the proposed buyout price is too low and you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
SOURCE Johnson & Weaver, LLP