Paulson & Co. to Buy Steinway For $512 Mln

Steinway Musical Instruments said Wednesday that Paulson & Co. has agreed to buy the company for $40 a share, or roughly $512 million. Kohlberg & Company, which had bid $35 per share, said Tuesday it would not match Paulson's offer. Steinway says it has terminated its deal with Kohlberg and will pay a $6.7 million termination fee. Paulson's offer doesn't include a "go-shop" but Steinway can respond to unsolicited offers in certain circumstances, and can accept a "Superior Proposal" until the close of the tender offer. Steinway, of Waltham, Mass, is famous for its grand pianos. Allen & Company provided financial advice to Steinway.

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