Calpine Confirms Deal to Be Acquired

Energy Capital Partners has agreed to acquire Calpine, a US power generator, for $5.6 billion in cash, offering $15.25 per share to investors. The discussion explores whether current asset prices are too high, considering the potential for future economic growth. Despite concerns about market peaks, the low inflation and supportive central banks suggest that current valuations may be justified. The focus is on future market conditions rather than present realities.

What is the agreed purchase price for Calpine by Energy Capital Partners?

• $7.8 billion

• $6.7 billion

• $5.6 billion

• $4.5 billion

What will Calpine investors receive per share as part of the acquisition deal?

• $16.50

• $15.25

• $13.75

• $12.50

What concern is raised about the current asset prices in the market?

• They are too low

• They are too high

• They are unpredictable

• They are stable

What is the typical duration of most economic recoveries mentioned in the discussion?

• 3-4 years

• 5-6 years

• 6-9 years

• 10-12 years

What factors are mentioned as supportive of the current market valuations?

• Strict regulations and high inflation

• Low inflation and supportive central banks

• High inflation and strict central banks

• High interest rates and low inflation