Forestar Group (FOR - Get Report) , a real estate development firm, said on Thursday that U.S. homebuilder D.R. Horton's (DHI - Get Report) 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.

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