Rival walks away to leave Paulson alone at the piano
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Wednesday 14 August 2013
John Paulson looks set to acquire the American piano maker Steinway Musical Instruments after the private equity firm Kohlberg & Co yesterday waived its right to negotiate with the 160-year-old business after an approach from the hedge fund billionaire.
Earlier this week, Steinway said it had received a $38-per-share bid, valuing its business at about $478m (£283m), which trumped an agreed $35 offer from the private equity firm Kohlberg & Co. Although the company did not name the bidder, the higher offer is understood to have been tabled by Mr Paulson's Paulson & Co fund.
Steinway had given Kohlberg until today to come up with an improved bid matching or topping the higher offer. But in a regulatory filing yesterday, the private equity firm in effect walked away from the bid battle, saying it had waived its right to negotiate further with the Steinway board "with respect to the new proposal and any other proposal at the same or higher price than the new proposal".
The battle to acquire the business underlines the growth prospects in the market for high-end goods, as investors eye the potential for stronger demand from emerging markets in Asia. In addition to Steinway pianos, the business makes a range of other musical instruments, including Bach Stradivarius trumpets.
Buying the piano maker would be an unusual step for the hedge fund, which is best known for betting against toxic mortgages in the run-up to the recent housing crash. The strategy ensured that while most of Wall Street was left struggling to contain losses during the financial crisis, Paulson banked billions of dollars in profits.
In key: A sound is born
A German immigrant called Henry Engelhard Steinway founded Steinway & Sons in a Manhattan loft in 1853, developing the modern piano and building one instrument at a time with his five sons. In 1867, the company came to international prominence when it won the "Grand Gold Medal of Honour" at the Paris Exhibition.
Today, the parent company Steinway Musical Instruments produces a range of instruments, including clarinets and trumpets. Its shares trade in New York under the ticker LVB, after Ludwig van Beethoven.
- 1 Husband creates spreadsheet detailing wife's 'excuses' for turning down sex
- 2 UK pirates will get four warning letters a year
- 3 Saneie Masilela, 9, marries Helen Shabangu, 53 years his senior, for the second time
- 4 Time runs out for Christian Iraq: Isis deadline passes with mass flight
- 5 Why I'm on the brink of burning my Israeli passport
Saneie Masilela, 9, marries Helen Shabangu, 53 years his senior, for the second time
Time runs out for Christian Iraq: Isis deadline passes with mass flight
Miley Cyrus death hoax: Fans distraught after Facebook scam goes viral and she doesn't tweet for three days
Malaysia Airlines MH17 crash: France and Germany accused of going soft on Putin as sanctions talks stall
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
Malaysia Airlines MH17 crash analysis: A tragic lesson of advanced weapons in the wrong hands
- < Previous
- Next >
iJobs Money & Business
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
£28000 - £32000 per annum: Ashdown Group: Training/Learning and Development Co...
£40000 - £50000 Per Annum: Clearwater People Solutions Ltd: Business Analyst r...
£500 - £550 per day: Orgtel: BA/PM - Client Data London (Greater)