WALTHAM, Mass. (AP) — The famed piano maker Steinway is being sold for $499 million.

The company terminated an existing sales agreement with Kohlberg & Co. after it was outbid by another investment firm, Paulson & Co.

Paulson topped Kohlberg's offer by $3 per share.

Steinway, which is being taken private, will have to pay a termination fee of about $6.7 million.

Paulson will ultimately pay $40 per share for the Waltham, Mass., company. Steinway valued the sale at about $512 million.

Paulson will open a tender offer for shares of Steinway Musical Instruments Inc. within the next five days.