Paulson raises offer to $40/shr from $38
Offer values company at $512 million
Shares rise to $40.41 in premarket trading
Steinway says merger agreement does not provide for go-shop period
Aug 14 (Reuters) – Steinway Musical Instruments Inc, best known for its grand pianos, said it would be taken private by Paulson & Co Inc after the hedge fund firm raised its offer to $40 per share, valuing the 160-year old company at about $512 million.
Steinway’s shares rose to $40.41 in premarket trade, suggesting some investors expect a higher offer.
The company said on Monday it had received a bid of $38 per share from an unidentified asset manager that topped an offer of $35 per share from Kohlberg & Co. A source identified the new bidder as John Paulson’s hedge fund firm.
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