Kohlberg bows out of Steinway bidding

Investment firm Kohlberg & Co. has withdrawn from the bidding for legendary piano maker Steinway after a competing offer hit just the right note.

Steinway agreed in July to sell itself to Kohlberg for $35 per share. But the piano maker said Monday that an investment firm, which it did not name, offered to pay $38 per share. The roughly $477 million bid topped Kohlberg’s earlier $438 million offer.

The new bid is a 25 percent premium to Steinway’s closing price just before Kohlberg’s bid was announced.

Kohlberg had until Wednesday to negotiate a better offer with Steinway. Otherwise, the deal between it and Steinway will be terminated and the keyboard icon will ink a deal to be bought by the other firm.

According to a document filed with the U.S. Securities and Exchange Commission on Tuesday, Kohlberg has waived the right to negotiate a new offer.