Forestar Group Inc said on Friday top U.S. homebuilder D.R. Horton Inc had sweetened its offer to buy a 75 percent stake in the real estate developer, escalating a bidding war with investment firm Starwood Capital Group.

Forestar said D.R. Horton’s new cash offer of $17.75 per Forestar share — up from $16.25 per share previously — was superior to a proposal from Starwood to buy all of Forestar.

D.R. Horton’s new offer values 75 percent of Forestar at about $565 million, according to Reuters calculations.

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