* Forestar announces agreement with D.R. Horton and terminates Starwood merger agreement

* Forestar also announced today that it has terminated its previously announced merger agreement with Starwood Capital Group

* Entered into definitive agreement with D.R. Horton under which D.R. Horton will acquire 75 pct of outstanding shares of co common stock for $17.75 per share in cash

* ‍Forestar is also announcing cancellation of its special meeting of stockholders which was scheduled to be held on July 7, 2017​

* Says Forestar paid Starwood a $20 million termination fee

* As part of transaction, forestar and D.R. Horton will enter into a stockholder's agreement and a master supply agreement Source text for Eikon: Further company coverage: