State-owned Chinese firm makes a play for Steinway pianos
China Poly Group said to be in early stage of making an offer to musical instrument manufacturer controlled by hedge fund billionaire John Paulson
Steinway Musical Instruments, the piano maker controlled by US hedge fund billionaire John Paulson, has attracted takeover interest from China Poly Group, people familiar with the matter said.
The state-owned conglomerate was said to be in the early stages of considering an offer for Steinway.
Other suitors may also emerge for the business, according to the people, who asked not to be identified because the deliberations are private.
Poly Group started in 1992 as a supplier of defence equipment for the Chinese military. The conglomerate now has operations spanning explosives manufacturing, real estate, mining, cinemas and the arts. Hong Kong-listed unit Poly Culture Group owns China’s biggest home-grown auction house, in addition to running a chain of theatres.
Paulson’s New York-based investment firm Paulson & Co agreed to acquire Steinway in 2013 for about US$512 million, beating rival bidders including South Korea’s Samick Musical Instruments.
The piano maker that gave the company its name was founded in 1853 by German immigrant Henry Engelhard Steinway in a Manhattan loft on Varick Street, and over the following decades became a brand recognised worldwide.
An official at Poly Group and a representative for Paulson & Co declined to comment. A representative for Steinway did not immediately reply to queries outside regular US business hours.