Article: Allete to give car unit to shareholders; The new publicly traded company will be called Adesa Corp. and based in Indiana.(BUSINESS)(EARNINGS)

Byline: Terry Fiedler; Staff Writer

Responding to investor pressure to unlock value in its stock, Duluth-based Allete Inc., the parent company of Minnesota Power, announced Friday that it will spin off its automotive services business to shareholders.

The new publicly traded company will be called Adesa Corp. and have headquarters in the Indianapolis area, where the unit is based now. Allete shareholders are expected to receive one share of Adesa for each share of Allete they own in a tax-free transaction.

The spinoff is expected to be completed in mid-2004.

The move will effectively unwind a multi-year diversification effort by the ...

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