Steinway Musical Instruments Sued in $438 Million Buyout

Steinway Musical Instruments Inc., owner of the 160-year-old piano maker, was sued by a shareholder challenging its agreement to be bought by the private-equity firm Kohlberg & Co. for about $438 million.

Joseph Tillo Jr. contends in a Delaware Chancery Court complaint filed today in Wilmington that the $35-a-share offer is unfair and inadequate.

“The board should have leveraged Steinway’s position to extract a greater premium,” Tillo alleges. He seeks a ruling to stop the deal under its present terms and asks for awards of damages and legal fees.

The case is Joseph Tillo Jr. v. Steinway, CA8713, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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