Utility Owner Allete Sued in Bid to Stop $6.2 Billion Sale (1)

Allete Inc. isn’t giving investors enough information to make an informed decision about a proposed $6.2 billion sale of the publicly traded utility owner to an investment partnership, a shareholder says in a suit to halt the deal.

The proposed transaction is also unfair because company insiders will benefit disproportionately, creating conflicts of interest, the shareholder says. She filed her complaint Monday in the US District Court for the Southern District of New York.

A February 2024 press release on the company’s financial results for the previous year “indicated sustained and solid financial performance,” including “earnings of $4.30 per share ...