WALTHAM, Massachusetts (AP) -- Steinway Musical Instruments Inc. says an investment firm has offered to pay about $477 million for the piano maker, topping an earlier bid from Kohlberg & Co.
The prospect of a bidding war sent Steinway shares up 8 percent to $39.10 in premarket trading Monday.
The Waltham, Massachusetts-based company identified the new potential buyer only as an investment firm with more than $15 billion under management. That bidder has offered to pay $38 per share for company.
Steinway had agreed to sell itself to investment firm Kohlberg & Co. for $35 per share.
Kohlberg has until Wednesday to lay out a better bid. Otherwise, the deal between it and Steinway will be terminated and the musical instruments maker will agree to be bought by the other firm.