PIANO maker Steinway Musical Instruments surged almost 10 per cent in trading yesterday after receiving a mystery bid for the firm that topped a previous offer from Kohlberg & Co.
The offer of $38 a share, or $475m, from an unnamed bidder surpassed Kohlberg’s $35 a share offer made on 1 July.
The original offer had been accepted by Steinway in July.
A 45 day period where rivals could come in and make higher offers led to the emergence of the rival bid.
Kohlberg now has three days to put more money on the table or lose out on the 160-year-old piano maker.
Steinway, which was founded in New York by Henry Engelhard Steinway, captured the popular imagination after its pianos were played by top musicians like Duke Ellington and John Lennon.
The company recorded second quarter profits of $20.2m earlier this month, helped by the sale of its Steinway Hall property. Shares closed up 9.27 per cent at $39.59.