John Paulson, founder and president of Paulson & Co, has made a bid for iconic piano maker Steinway, according to sources that spoke with the New York Post.
Steinway did not name the bidder in its press release.
The $38 a share offer that is said to come from Paulson & Co is higher than the $35 a share offer that was made by an affiliate of Kohlberg & Company back in July. From the press release:
"After careful consideration and consultation with its financial advisors and legal counsel, the Company’s board of directors, consisting of all disinterested directors, has determined that the offer constitutes a Superior Proposal, as defined in the previously announced Agreement and Plan of Merger dated June 30, 2013 (the “Kohlberg Merger Agreement”) by and among the Company and affiliates of Kohlberg & Company, L.L.C. (“Kohlberg”), pursuant to which Kohlberg agreed to acquire all of the outstanding shares of the Company’s common stock at a purchase price of $35.00 per share in cash.
"In accordance with the Kohlberg Merger Agreement, the Company provided notice to Kohlberg on August 11, 2013 of the board of directors’ determination that the offer from the bidder constitutes a Superior Proposal, and that the Company is prepared to negotiate in good faith with Kohlberg, if Kohlberg so desires, to adjust the terms of the Kohlberg Merger Agreement such that the offer from the bidder no longer constitutes a Superior Proposal."
Kohlberg can make adjustments to its offer, but the board of directors expects the company to terminate the Kohlberg merger agreement if the the new offer continues to be the superior proposal.
The stock is down 3% today.
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