Kohlberg & Co., the private equity firm that had offered to buy Steinway Musical Instruments Inc. for $438 million, says it will not compete against a new, higher bid to purchase the Waltham company.
Kohlberg had a right to return to negotiations after the higher offer from an as yet unidentified bidder was disclosed on Monday. But the investment firm said in a regulatory filing Tuesday that it was withdrawing from negotiations “with respect to the new proposal and any other proposal at the same or higher price than the new proposal.”
Steinway had agreed to the original $35 per share acquisition offer by Kohlberg six weeks ago but had an opportunity to seek a higher bid for 45 days, a period that was scheduled to expire Wednesday. The company said Monday that it received a new $38 per share offer, amounting to $477 million.
Investors expecting a bidding war for Steinway pushed the company’s shares above the latest offer price Monday, when the stock closed at $39.59 per share.
Steinway shares fell $1.22 to $38.37 in mid-day trading Tuesday.