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Kohlberg abandons its bid for Steinway

AFP-JIJI

Private equity firm Kohlberg & Co. ended its campaign to acquire Steinway Musical Instruments after refusing to raise its bid to beat a rival offer, Steinway said in a regulatory filing Tuesday.

Kohlberg, which in July proposed buying the piano maker for $438 million, waived its right to propose a new bid after the competing proposal surfaced from an undisclosed firm, Steinway said.

The disclosure comes one day after Steinway announced that it received a second bid of $38 per share, topping Kohlberg’s $35 per share offer. Steinway said the bid came from “an affiliate of an investment firm with over $15 billion under management.”

The Wall Street Journal, citing people familiar with the matter, said the new bidder is hedge fund Paulson & Co.