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Homebuilders mull Lennar's deal for CalAtlantic

Published 10/30/2017, 12:03 PM
© Reuters.  Homebuilders mull Lennar's deal for CalAtlantic
  • Rising interest rates haven't put a dent in the sector's tear this year, with the ITB up 43% (and more than 50% Y/Y).
  • If anything's bugging the homebuilders it's shortages of labor and land to build on - not the worst problems to have, and issues that could perhaps be softened by consolidation.
  • Merger presentation slides
  • Lennar (NYSE:LEN) is down 2.6% following the deal, and CalAtlantic (NYSE:CAA) up 22.7% to $49.62. Under the term's CAA shareholders will receive 0.885 shares of LEN for each share of CAA they own, but can also elect to receive $48.26 per share in cash (up to $1.2B in total).
  • Other players: Toll Brothers (TOL -0.4%), Pulte (PHM +0.1%), KB Home (KBH -0.3%), Hovnanian (HOV +1.3%), M.D.C. Holdings (MDC +0.2%), D.R. Horton (DHI +0.1%), NVR (NVR +0.5%)
  • Previously: Lennar and CalAtlantic to merger in nearly $10B deal (Oct. 30)
  • Now read: Toll Brothers: Are We There Yet?


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