Steinway Stock Rises After a New Bidder Enters the Stakes

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UPDATE 8/13: Reuters reports that Kohlberg & Co on Tuesday refused to match a $477 million offer, said to be from the hedge fund Paulson & Co.

The stock of Steinway Musical Instruments hit an all-time high on Monday after the company received a new buyout offer.

Steinway's stock climbed $3.36, or 9.3 percent, to $39.59 after an unidentified investment firm topped an earlier offer from Kohlberg & Co., according to the Associated Press.

The new bidder has offered to pay $38 per share, or about $477 million, for the company. That tops Kohlberg's bid of $438 million.

The Waltham, Mass.-based company identified the new potential buyer only as an investment firm with more than $15 billion under management.

Speculation on the street is that Kohlberg will raise its offer in an attempt to outbid the newcomer. The company has until the end of Wednesday to do so. Steinway has been shopping for a buyer since December, after concluding a 17-month strategic review.

With the Associated Press