Allete, Inc.: 11% Return Beats A Bank For Short-Term Idle Cash

Core Viewpoint - ALLETE has entered into a definitive agreement with a partnership led by CPP Investments and GIP to be acquired for $67.00 per share, totaling $6.2 billion including debt assumption, with the transaction expected to close in mid-2025, pending shareholder and regulatory approvals [1] Group 1: Acquisition Details - The acquisition price is set at $67.00 per share in cash, amounting to $6.2 billion when including the assumption of debt [1] - The transaction is anticipated to close in mid-2025, contingent upon shareholder approval and regulatory clearances from MPUC, PSCW, and FERC [1] Group 2: Shareholder Insights - Shareholders of ALLETE could potentially earn a 12.3% annual return by holding shares until the expected settlement in mid-2025, based on the acquisition offer [2] - Dividends are expected to continue being paid to shareholders until the settlement date [2]