New buyout bid for Steinway

<p>Steinway Musical Instruments could be sold.</p>

A fresh buyout bid has been made for Steinway Musical Instruments, with the latest offer for the company valuing it in excess of £300 million.

An investment firm with more than $15 billion under management is believed to be behind the bid, which is worth $477 million (£308 million).

This is well in excess of the previous offer that was made for the company by private equity firm Kohlberg & Co, which valued Steinway at $438 million in its bid.

Christopher Anderson, a partner at Kohlberg, previously promised that he would aim "to preserve and support everything that makes a Steinway piano special" if he was successful in his bid to buy the musical instruments manufacturer.

Steinway shares were up by than nine per cent to $39.59 on news of the new approach.

Later today (August 13th), stocks will open on the New York Stock Exchange at $39.59 and are expected to rise further due to the offer from the investment firm.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.