Steinway Agrees to Acquisition by Paulson & Co.

And why not? The initial offer to take the company private from Kohlberg & Co. came in at $35 a share. Steinway reported on Monday that it had received a second offer of $38 a share from an unnamed investment firm that ultimately turned out to be Paulson, and the final deal boosts the cash price to $40 a share. What’s not to like?

Steinway will have to pay a breakup fee of about $6.7 million to Kohlberg, which amounts to about $0.50 or so per outstanding share. Pending regulatory approvals, the deal is expected to close in late September.

Shares of Steinway are up about 5% in premarket trading, at $40.25 in a prior 52-week range of $20.61 to $39.90.