Value For Shareholders Group Issues Open Letter To Fellow Forestar Shareholders

NEW YORK, Jan. 6, 2015 /PRNewswire/ --

---- Need for Clear and Focused Strategic Direction on Core Real Estate Business

---- Need for Shareholder-Aligned Oversight of Strategic Alternatives Review Through Change in Board Composition

---- Call for Immediate Cessation of All Non-Essential Oil & Gas Spending.

---- History of Poor Capital Allocation Decisions

---- Change to Questionable Corporate Governance Practices

SpringOwl Asset Management LLC (SpringOwl) and Cove Street Capital LLC (Cove Street, and together with SpringOwl, the Value FOR Shareholders Group) today released an open letter to its fellow shareholders of Forestar Group Inc. (NYSE: FOR).  The Value FOR Shareholders Group is a group of concerned shareholders comprised of SpringOwl and Cove Street that, together with their respective affiliated parties, beneficially own greater than 7.0% of Forestar's outstanding common stock.

The Value FOR Shareholders group also today announced the launch of www.valueFORshareholders.com.  The website will serve as a hub for Forestar's shareholders to access detailed information regarding their company and the suggestions we have made to improve the company for the benefit of all shareholders. 

The letter is available at http://www.valueforshareholders.com/#!filings-and-correspondence/c17jc

In sending the letter, Andrew M. Wallach of Spring Owl said, "The Value FOR Shareholders Group is taking these actions to ensure that the voices of Forestar's shareholders are heard as part of our effort to maximize shareholder value.  We believe that the company lacks clear and focused strategic direction, which is evident from its long-term stock price underperformance."

Jeffrey Bronchick of Cove Street added, "We have worked with Forestar management for almost two years in a private and conciliatory fashion with respect to (i) capital allocation issues, (ii) the wisdom, or lack thereof, in the enormous Oil & Gas investment and (iii) compensation and corporate governance issues.  Through recent conversations with Board members, it has become clear that we are at an impasse.  Given the dismal results for shareholders over the past seven years, we have little confidence that the same group of board members led by the same advisor can deliver the changes necessary to create long term value."

Wallach continued, "In establishing the website, we hope to be able to make information on Forestar readily available to investors as we seek to empower fellow stockholder owners of Forestar."

About SpringOwl Associates LLC
SpringOwl Associates LLC (SpringOwl) is a New York-based investment adviser with a fundamental value approach to investing in publicly traded companies.  SpringOwl actively engages with boards of directors and management teams to seek to unlock value for the benefit of all shareholders.   SpringOwl commenced operations in 1970 under the name of Cumberland Associates, and is wholly owned and controlled by SpringOwl Asset Management LLC.  The principal owners of SpringOwl Asset Management LLC are Jason N. Ader and Andrew M. Wallach. 

About Cove Street Capital LLC
Cove Street Capital, LLC is a Los Angeles based institutional investment advisor with nearly $1 billion in assets under management. The principal owners of Cove Street are Jeffrey Bronchick, CFA and Daniele Beasley.

Important Information
The Value FOR Shareholders Group consists of the following persons: SpringOwl Associates LLC, Cove Street Capital, LLC, Daniel B. Silvers, Barry Konig, Andrew Nelson and Laura Conover. 

Certain information contained herein constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology.  Such statements are not guarantees of future performance or activities.  Due to various risks and uncertainties, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements.

SOURCE SpringOwl Asset Management LLC

Related Links

http://www.valueFORshareholders.com

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