Steinway sale to hedge fund confirmed

<p>Steinway Musical Instruments is set to be sold.</p>

The sale of Steinway Musical Instruments has been confirmed, after a deal that values the firm at $512 million (£330 million) was agreed with a hedge fund.

Paulson & Co made a larger offer than a previous bid that had been made by rival firm Kohlberg & Co, which says it will not be looking to increase its own offer.

Shares in Steinway rose by around six per cent on the back of the news of the sale, pushing its stocks close to the sale price agreed with the hedge fund.

Sales were up by only two per cent for the piano manufacturer last year, so the new owner will need to find a way to turn the business around in the coming months and years.

Earlier in the week, it was revealed that an investment firm with more than $15 billion under management – Paulson & Co – had made a bid believed to be worth in excess of $477 million for the company.

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