Forestar Group (FOR) , a real estate development firm, said on Thursday that U.S. homebuilder D.R. Horton's (DHI) bid to acquire a majority stake in it could prove to be a superior bid to its deal with Starwood Capital.

Forestar, however, 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.

On Monday, D.R. Horton offered to buy 75% of Forestar for $16.25 per share, or about $520 million in cash. 

Forestar has to pay Starwood $20 million if their deal is terminated.

Shares of Forestar opened higher on Thursday.

Stocks have rebounded following a sharp sell off last week. Jim Cramer believes the rebound is real and gives investors advice on how to play the market going forward.

More from Investing

Closed-End Real Estate Funds Are Performing Well

Closed-End Real Estate Funds Are Performing Well

Successfully Plan for Retirement With a Triple-Tax-Free Health Savings Account

Successfully Plan for Retirement With a Triple-Tax-Free Health Savings Account

Mike Novogratz: A 'Herd of Institutional Investors' Is Moving Into Crypto

Mike Novogratz: A 'Herd of Institutional Investors' Is Moving Into Crypto

Fornite Funko Pop Toys Will Be Huge: CEO

Fornite Funko Pop Toys Will Be Huge: CEO

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray