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File photo. (AP Photo/Detroit News, David Coates)

The famed piano maker Steinway is being sold for $499 million.

The company terminated an existing sales agreement with Kohlberg & Co. after it was outbid by another investment firm, Paulson & Co.

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Paulson topped Kohlberg’s offer by $3 per share.

Steinway, which is being taken private, will have to pay a termination fee of about $6.7 million.

Paulson will ultimately pay $40 per share for the Waltham company. Steinway valued the sale at about $512 million.

Paulson will open a tender offer for shares of Steinway Musical Instruments Inc. within the next five days.