Mirant to Explore Strategic Alternatives to Enhance Stockholder Value
April 09 2007 - 8:20AM
PR Newswire (US)
ATLANTA, April 9 /PRNewswire-FirstCall/ -- Mirant Corporation
(NYSE:MIR) announced today that its Board of Directors has decided
to explore strategic alternatives to enhance stockholder value. The
company said that it has made significant progress in implementing
the program it announced in July and August 2006 to sell its
Philippine business and six U.S. natural gas-fired plants (which
sales are expected to close in the second quarter of 2007) and its
Caribbean business (which sale is expected to close in mid-2007).
In light of the status of the disposition program, the Board will
consider in the exploration process whether the interests of
stockholders would be best served by returning excess cash from the
sale proceeds to stockholders, with the company continuing to
operate its retained businesses or, alternatively, whether greater
stockholder value would be achieved by entering into a transaction
with another company, including a sale of the company in its
entirety. The company does not expect to consider making an
acquisition as part of this exploration process. JPMorgan will
serve as the financial advisor in this process. "We are commencing
this exploration of alternatives in order to provide our
stockholders with the greatest possible value," said Edward R.
Muller, chairman and chief executive officer. At this time, there
can be no assurance that any transaction will be pursued, other
than the dispositions that Mirant has previously announced, or that
any transaction that is pursued would be consummated. The company
does not intend to disclose developments with respect to the
exploration of strategic alternatives unless and until its Board of
Directors has completed its evaluation or approved a specific
transaction. As a result of today's announcement, the company will
not provide earnings guidance during the exploration process. The
company also noted that Mirant's certificate of incorporation
contains in Article 17 certain transfer restrictions that are
intended to preserve the value of the company's substantial tax
loss carryforwards. These restrictions apply when holders of five
percent or more of the company's stock own in the aggregate at
least 35 percent of the company's stock. When these provisions
apply, persons holding five percent or more of the company's stock
cannot acquire additional stock, and persons holding less than five
percent of the company's stock cannot become five percent holders.
Currently, as much as 26 percent of the company's stock is held by
or committed to holders of more than five percent of the company's
stock. As of February 28, 2007, the number of outstanding shares of
Mirant common stock to be taken into account for purposes of
calculating ownership under Article 17 was approximately 256
million. The company has filed today a Current Report on Form 8-K
that contains additional information about its tax position. Copies
of Mirant's certificate of incorporation and today's Form 8-K are
available on the company's website referred to below or can be
obtained through the Securities and Exchange Commission's website
at http://www.sec.gov/. Mirant is a competitive energy company that
produces and sells electricity in the United States, the Caribbean,
and the Philippines. Mirant owns or leases approximately 17,500
megawatts of electric generating capacity globally. The company
operates an asset management and energy marketing organization from
its headquarters in Atlanta. For more information, please visit
http://www.mirant.com/. DATASOURCE: Mirant Corporation CONTACT: For
media, Denise DesChenes or Brooke Morganstein of Sard Verbinnen
& Co., +1-212-687-8080; Investor relations, Mary Ann Arico,
+1-678-579-7553, , or Sarah Stashak, +1-678-579-6940, , both of
Mirant; For JP Morgan, Jimmy Elliott, +1-212-622-2298, , or Paul
Dabbar, +1-212-622-2287, , both of JP Morgan; Stockholder
inquiries, +1-678-579-7777 Web site: http://www.mirant.com/
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