A $475 million takeover offer for Steinway Musical Instruments Inc. raised the prospect of a bidding war for the Waltham maker of the celebrated Steinway piano and sent its shares to a 52-week high yesterday.
The $38-per-share offer from an undisclosed investment firm eclipsed a $438 million, or $35-per-share, July bid from Kohlberg & Co., which has until Wednesday to submit a superior offer. Otherwise, Steinway — whose namesake piano was introduced by a German immigrant in Manhattan in 1853 — will cancel its agreement with the New York private equity company.
The new cash offer from the unnamed investment firm, which Steinway says has $15 billion under management, does not include a financing contingency.
"We're very pleased that another credible buyer is interested in Steinway and understands the value of the business and the brands," spokeswoman Julie Theriault said.
Steinway posted net income of $13.5 million in the last fiscal year, on sales that rose 2.2 percent to $353.7 million. Just six of its 1,698 employees are based in Waltham. The company's Steinway & Sons piano division operates from Long Island City, N.Y., and its Conn-Selmer Inc. band and orchestra instruments division is in Elkhart, Ind.. It also has 11 U.S. and European manufacturing facilities and owns online classic music retailer ArkivMusic.
After the July bid by Kohlberg, analysts had expected better offers such as the one announced yesterday for Steinway, which sold its interest in Manhattan's Steinway Hall for $46 million earlier this year.
"There's a good chance we see another offer, a higher offer from Kohlberg, because there was little incentive for them to provide their best offer on the first round of bidding," Bradd Kern, a portfolio manager for Irvine, Calif.-based Armored Wolf, told Bloomberg. "It's time for Kohlberg to play Beethoven or get off the bench."
Steinway also can solicit alternative bids until Kohlberg's 11:59 p.m. tomorrow deadline. Its largest shareholder, South Korea's Samick Musical Instruments, last month said it's contemplating a proposal.
Public since 1996, Steinway hired a financial adviser to explore a whole or partial sale in 2011 after an unsolicited offer for its band instrument and online music units. It shelved those plans in December.
Its shares closed at $39.59 yesterday, up 9.27 percent, after hitting a $39.90 high.
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