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Joined: Jun 2008
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Another possibility would be Samick divesting itself from Steinway and building pianos under their own name versus the pianos they build for Steinway. I do not believe that Samick builds any pianos for Steinway. Having Samick take over Steinway is, I think, a better idea than having some Wall Street firm take over.
Gary
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Another possibility would be Samick divesting itself from Steinway and building pianos under their own name versus the pianos they build for Steinway. Samick has the plant and where with all to build an instrument of what ever quality they want in their new state of the art factory. They also have the financial resources to do what ever they want and are not dependent on Steinways portion of their business. On the opposite side Steinway in very dependent on Samick for their share of their business. Just a thought. Not only doesn't Samick build for Steinway (yet!!!) but Samick hasn't built a new plant since the 1990s when they built just outside of Jakarta. (I've been there and, while they turn out a good value instrument, it is far from state of the art. Where did you come up with this stuff?
Piano Industry Consultant
Co-author (with Larry Fine) of Practical Piano Valuation
www.jasonsmc@msn.com
Contributing Editor & Consultant - Acoustic & Digital Piano Buyer
Retired owned of Jasons Music Center
Maryland/DC/No. VA
Family Owned and Operated Since 1937.
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Congrats to all the LVB owners. A buyout like this, a company in the black, is the ultimate confirmation of its value. Bummer that we won't have the transparency of a public company henceforth. I was hoping to get in at some point in the oscillations in price, but no such luck.
phacke
Steinway YM (1933)
...Working on:
J. S. Bach, Toccata (G minor) BWV 915
(and trying not to forget the other stuff I know)
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Joined: May 2013
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Sorry- Brain Fog - Meant Kawai - Not Samick
Last edited by pianocritic; 07/01/13 03:44 PM.
Piano Critic-A player and listener. Musician-Bachelors and Masters in Music. Retired from Professional life and just enjoying Music.
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"...There is something odd about saying Tennessee Steinway, y'all. (WOW - New marketing angle: "Steinway - The Thoroughbred of Pianos")..."
I believe you are thinking of Kentucky, Marty--- if you're thinking of fine horseflesh.
The name that comes to mind for me, is Karen Hendricks. But let us hope that Steinway fares better under its new management than Baldwin did.
Clef
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The wording is all very genteel, but the link about Kohlbetg says "corporate raider" to me. Shake things up to extract the most cash, and then turf the company out to try to run as a going concern again, if it survives the operational shakeup and the cash extraction.
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Might this parallel the Bain Capital/Guitar Center scenario?
In that case, Guitar Center, who had been taken private by Bain, was loaded up with so much debt that, while it is a reasonably profitable company it is unable to meet its debt obligations.
Piano Industry Consultant
Co-author (with Larry Fine) of Practical Piano Valuation
www.jasonsmc@msn.com
Contributing Editor & Consultant - Acoustic & Digital Piano Buyer
Retired owned of Jasons Music Center
Maryland/DC/No. VA
Family Owned and Operated Since 1937.
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This may not be as bad as it initially seems. Kohlberg & Co. was founded by Jerome Kohlberg, one of the founders of Kohlberg Kravis Roberts, the giant leveraged-buyout equity firm. Mr. Kohlberg sold out of KKR in the late 1980s because he disagreed with KKR policies of heavily-leveraged buyouts of huge companies, and started Kohlberg & Co.
Worst case scenario - Kohlberg sells the Astoria and Hamburg factories, moves manufacturing to China, and turns Steinway into another Baldwin.
Best case scenario - Kohlberg shakes up the company without moving manufacturing out of the U.S. & Germany, restores it to profitability, and improves the quality of Steinway pianos.
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Joined: Apr 2007
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I find this news a little worrying. A piano company is not like a toaster company. It takes an amazing amount of finesse and care to produce a quality piano. People who don't know a lot about pianos can drastically underestimate how important all the little nit-picky details are when it comes to touch and tone. Kohlberg & Co seem oriented towards cutting costs, which sounds dangerous for a company like Steinway.
I view a piano factory as a really large piano with lots of intricate parts that have to be well-regulated to produce the desired result. There are so many places to go wrong!
Anyways, I'll keep my fingers crossed that this will be a positive chapter in the companies history.
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I've heard someone say this: "The company that bought Steinway follows the same business practices of Mitt Romney. They'll pillage the company for everything they can and then dump it."
How true do you think this is? Congrats to all you stock holders out there though. They are buying shares back at $35, which is around 16% higher than the stock price yesterday.
Previously: Kawai MP-10, 1980 Yamaha C7, 2012 Young Chang Y175
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I have no idea whether this will be good for Steinway pianos or not. But it's now about more than just a piano. It is brand marketing on an international scale. Witness the China-specific BMW/Steinway Series 7 "Composition." From http://www.bmwcoop.com/2010/11/17/v...composition-together-with-steinway-sons/Composition together with Steinway & Sons BMW give birth to a special edition of 7 Series, an edition which brings a stylish feel for the Bavarian model. The Germans at BMW decided to join the forces with the Steinway & Sons, a renowned music instruments manufacturer. The special edition developed by BMW and Steinway & Sons is called Composition and is dedicated to the 7 Series range. I understand the production run quickly sold out. I’ve seen two of them in the financial district of Tianjin. There are several other “Steinway†branded products around as well. ddf
Delwin D Fandrich
Piano Research, Design & Manufacturing Consultant
ddfandrich@gmail.com
(To contact me privately please use this e-mail address.)
Stupidity is a rare condition, ignorance is a common choice. --Anon
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I've heard someone say this: "The company that bought Steinway follows the same business practices of Mitt Romney. They'll pillage the company for everything they can and then dump it." You've heard someone say this? Tell them they don't know what the heck they are talking about. If you took the time to research exactly what took place at Bain during the time Mitt Romney was in charge, you would see MANY more examples of faltering companies that were made viable again by Bain's intervention. Since inception it has invested in or acquired hundreds of companies including AMC Entertainment, Aspen Education Group, Brookstone, Burger King, Burlington Coat Factory, Clear Channel Communications, Domino's Pizza, DoubleClick, Dunkin' Donuts, D&M Holdings, Hospital Corporation of America (HCA), Sealy, The Sports Authority, Staples, Toys "R" Us, Warner Music Group and The Weather Channel. Your "friends" premise is simply ignorant liberal propaganda
Piano Technician/Tuner
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Here's a new document filed by Steinway today: http://phx.corporate-ir.net/phoenix.zhtml?c=76306&p=irol-secIt specifically sets up the possibility for Samick's Chairman Kim to be a suitor.
Piano Industry Consultant
Co-author (with Larry Fine) of Practical Piano Valuation
www.jasonsmc@msn.com
Contributing Editor & Consultant - Acoustic & Digital Piano Buyer
Retired owned of Jasons Music Center
Maryland/DC/No. VA
Family Owned and Operated Since 1937.
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"...There is something odd about saying Tennessee Steinway, y'all. (WOW - New marketing angle: "Steinway - The Thoroughbred of Pianos")..."
I believe you are thinking of Kentucky, Marty--- if you're thinking of fine horseflesh. I was thinking of a Tennessee Trotter which I guess is not a thoroughbred. Cheers - Steinway-The Jack Daniels of Pianos! (I'll sip to that)
Marty in Minnesota
It's much easier to bash a Steinway than it is to play one.
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Joined: Jun 2009
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The question is: why would Kohlberg really want to buy Steinway? It is not a start-up dot-com with the potential to make its owners tens of billion$. As I see it without insider knowledge, only two possibilities present themselves:
1) the new owners can afford to be self-indulgent by purchasing a high prestige cultural item, either to burnish their portfolio, and/or there is a cultural affectionato at Kohlberg who wants Steinway for itself.
Or, and more likely in my view:
2) the new owners want to exploit the prestige of the Steinway name by expanding the trade name to include far more than it currently does, making more and cheaper instruments with the Steinway name pulling in new customers, as well as expanding the product line (Steinway headphones, Steinway plasma TVs, Steinway bicycles, you name it).
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Joined: Jun 2008
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The sharks, smelling blood in the water, are starting to circle the deal. http://www.marketwatch.com/investing/stock/LVB/news
SHAREHOLDER ALERT: Levi & Korsinsky Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of Steinway Musical Instruments, Inc. in Connection with the Sale of the Company to Kohlberg & Company
7:13 a.m. Today
- BusinessWire
Harwood Feffer LLP Announces Investigation of Steinway Musical Instruments Inc.
9:25 p.m. July 1, 2013
- PR Newswire
Faruqi & Faruqi, LLP, Partner Juan E. Monteverde Launches an Investigation of Steinway Musical Instruments Inc. Over the Proposed Sale of the Company to Kohlberg & Company
7:00 p.m. July 1, 2013
- BusinessWire
Morgan & Morgan Announces the Investigation of Steinway Musical Instruments, Inc. Buyout LVB
5:28 p.m. July 1, 2013
- PR Newswire
Finkelstein Thompson LLP Announces Investigation of Steinway Musical Instruments, Inc.
5:01 p.m. July 1, 2013
- BusinessWire
Acquisition of Steinway Musical Instruments, Inc. by Kohlberg & Company May Not Be in the Best Interests of Steinway Shareholders
4:30 p.m. July 1, 2013
- PR Newswire
Steinway Musical Instruments, Inc. Shareholder Alert: Briscoe Law Firm and Powers Taylor, LLP Investigate Sale of Steinway Musical Instruments to Kohlberg & Company
4:15 p.m. July 1, 2013
- BusinessWire
SHAREHOLDER ALERT: Levi & Korsinsky Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of Steinway Musical Instruments, Inc. in Connection with the Sale of the Company to Kohlberg & Company
3:12 p.m. July 1, 2013
- BusinessWire
Rigrodsky & Long, P.A. Announces Investigation Of Steinway Musical Instruments, Inc. Buyout
11:34 a.m. July 1, 2013
- BusinessWire
Gary
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Joined: Dec 2009
Posts: 389
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Posts: 389 |
Gotta love all the speculation about Samick building another plant in Gallatin . Especially since people that work there are always telling me they are looking to move out of the area. Dolly Parton was going to build another huge theme park out by the Opry and her plans were dashed when she got the land use tax bill. I loved it when she told state officials to go pound sand on national TV... so much for the estimated 500 jobs, plus thousands of support jobs.
Just because you own land in the state of TN does not mean you can develop it and they will make you pay dearly in taxes. I'm still trying to figure out why I pay 50 bucks extra a year for the brand new Nashville speedway which is already out of business, 25 mil to build.
J. Christie Nashville Piano Rescue www.NashvillePianoRescue.comEast Nashville Bowling Green, KY Scottsville KY. Chamber of Commerce Member/Sponsor Putting inspiration in the hands of area musicians Through restoration/renovation
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Joined: Mar 2008
Posts: 3,186
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The sharks, smelling blood in the water, are starting to circle the deal. http://www.marketwatch.com/investing/stock/LVB/news
SHAREHOLDER ALERT: Levi & Korsinsky Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of Steinway Musical Instruments, Inc. in Connection with the Sale of the Company to Kohlberg & Company
7:13 a.m. Today
- BusinessWire
Harwood Feffer LLP Announces Investigation of Steinway Musical Instruments Inc.
9:25 p.m. July 1, 2013
- PR Newswire
Faruqi & Faruqi, LLP, Partner Juan E. Monteverde Launches an Investigation of Steinway Musical Instruments Inc. Over the Proposed Sale of the Company to Kohlberg & Company
7:00 p.m. July 1, 2013
- BusinessWire
Morgan & Morgan Announces the Investigation of Steinway Musical Instruments, Inc. Buyout LVB
5:28 p.m. July 1, 2013
- PR Newswire
Finkelstein Thompson LLP Announces Investigation of Steinway Musical Instruments, Inc.
5:01 p.m. July 1, 2013
- BusinessWire
Acquisition of Steinway Musical Instruments, Inc. by Kohlberg & Company May Not Be in the Best Interests of Steinway Shareholders
4:30 p.m. July 1, 2013
- PR Newswire
Steinway Musical Instruments, Inc. Shareholder Alert: Briscoe Law Firm and Powers Taylor, LLP Investigate Sale of Steinway Musical Instruments to Kohlberg & Company
4:15 p.m. July 1, 2013
- BusinessWire
SHAREHOLDER ALERT: Levi & Korsinsky Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of Steinway Musical Instruments, Inc. in Connection with the Sale of the Company to Kohlberg & Company
3:12 p.m. July 1, 2013
- BusinessWire
Rigrodsky & Long, P.A. Announces Investigation Of Steinway Musical Instruments, Inc. Buyout
11:34 a.m. July 1, 2013
- BusinessWire
This happens with every major corporate finance announcement. There's a genus of bottom-feeding class action plaintiff lawyers who file suit at the drop of a hat on every corporate development, regardless of whether there's any evidence of wrongdoing, in the hope of extorting a "nuisance" settlement that the real risk-takers might view as worth the cost to clear the path for the merger, acquisition, or what have you. In these settlements, the lawyers usually get cash for 35-40% of the putative "value" of the settlement, and the individuals who opt into the plaintiff "class" usually get coupons for 5% off of their next purchase from the evil corporate wrongdoers who allegedly screwed them in the first place. It's quite a system.
![[Linked Image]](https://forum.pianoworld.com//gallery/42/full/15854.png) "Don't let the devil fool you - Here comes a dove; Nothing cures like time and love." -- Laura Nyro
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I don't like the deal and would prefer to keep my shares. I purchased after doing some research and think Steinway looks pretty good for the future. Their sales in the Americas have recovered, and overseas sales are increasing thanks to China. My 0.0000000001% share in the company is probably not enough to squash the buyout, however. :-) My equity consists of a pile of spruce shavings on the shop floor, maybe they'll let me keep those.
Gary
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Joined: Nov 2009
Posts: 6
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I can assure everyone that this is a very good day for Steinway & Sons and their customers. Steinway's constituency will be very happy with the results.
David Slan, President
Steinway Piano Gallery - Washington, DC/St. Louis
Last edited by Steinway Piano DC; 07/02/13 11:57 AM.
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