TubeNet

Thought people would like to see this.... I don't know what this means now.


For Immediate Release:

Steinway to Terminate Proposed Woodwind & Brasswind Acquisition

WALTHAM, MA - January 16, 2007 - Steinway Musical Instruments, Inc. (NYSE: LVB) announced today it has provided a notice of termination of the asset purchase agreement dated December 15, 2006 with Dennis Bamber, Inc. d/b/a The Woodwind & The Brasswind. Based on the due diligence performed subsequent to December 15th, the Company has concluded that there will be a failure of certain conditions necessary to close the transaction. Therefore, Steinway is exercising its right to terminate the agreement. The timing and effect of this termination is subject to approval by the court.

The Woodwind & The Brasswind, one of the nation's largest music retailers, filed for Chapter 11 bankruptcy protection in November. On December 15, 2006, Steinway signed an agreement to acquire substantially all the assets of The Woodwind & The Brasswind. A judge appointed Steinway's bid of approximately $40 million as the stalking-horse bid for the auction scheduled for January 24, 2007.





About Steinway Musical Instruments

Steinway Musical Instruments, Inc., through its Steinway and Conn-Selmer divisions, is one of the world’s leading manufacturers of musical instruments. Its notable products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos.





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YES! Even the cyborg must comply with federal bankruptcy court.

What this means is "GuitarWind"

That's not always a bad thing. Remember, Gibson bought Baldwin out of bankruptcy, and both are doing well, in spite of the "Elvis" and "Les Paul" pianos.

I received this email on Sunday. Kind of puts this "news release" in a new light.

To Our Valued Dealers:

This e-mail is to make you aware of a letter that you may receive from an unknown source. The letter will likely come to you in an unmarked envelope with a postmark from or . The letter contains false statements and a forged signature of my name.

We are not certain where this letter originated. We wanted to let you know that the letter did not come from anyone at Conn-Selmer. It contains false and damaging statements. Should you receive this letter, please stop its distribution, place the letter and its envelope in a plastic bag and forward it to:

Dennis Hanson
General Counsel
Steinway Musical Instruments, Inc.
800 South Street, Suite 305
Waltham, MA 02453

Should you become aware of the originator of this letter, we would ask that you provide that information to us, as well.

We appreciate your cooperation and thank you for your understanding.

Best regards,

John M. Stoner

President & CEO

Conn-Selmer, Inc.

Perhaps a love letter from someone who "used to work" for Bach?

Failure of the "due dilligence" phase of an acquisition is not usually a good sign. It likely means that the guys with the sharp pencils went over C-S's entire financial position, including any potential liabilities and found something they didn't like.

It may mean that it's going to be harder for WWBW to find another suitor.



(You lawyers in the Armani suits, please note that I said "usually", "may", "likely" and other such weasel words. I'm just guessing.)

The new buyer will be the Chinese guy on Southpark. The new name: City Band Instruments ... pronounced just like the Southpark guy pronounces it.

SplatterTone wrote:The new buyer will be the Chinese guy on Southpark. The new name: City Band Instruments ... pronounced just like the Southpark guy pronounces it.

G*ddamn Mongolians! dent up my city tuba! damn Mongolians!

Another news story to add to the post:

No WW&BW Auction, but GC Rebids

The awaited auction for The Woodwind & The Brasswind, held today in South Bend, Ind., was a non-event.

Anyone interested in bidding for the retailer, which filed for Chapter 11 bankruptcy last November, had to submit a bid for qualification by Jan. 22. No bids were received. Since the auction had been advertised in the Wall Street Journal, officials decided to hold the event, but nothing happened beyond a roll call.

According to an individual involved in the case, former lead bidder Guitar Center submitted a bid yesterday. The actual amount is unknown, but it is less than Guitar Center’s original bid of $37.1 million.

Guitar Center lost its lead bidder status to Steinway Musical Instruments on Dec. 15. Steinway, however, retracted its $40.5 million offer on Jan. 16, claiming that certain conditions necessary to close the transaction were not met. Allegedly, inventory said to be there is not there. Dennis Bamber, Woodwind & Brasswind president and CEO, has denied that claim.