AP News, April 9th, 2007
Mirant Corp. said Monday it was considering a possible sale and other moves to boost the power provider's value for shareholders. Its shares rose more than 5 percent in morning trading.
The Atlanta-based energy company is currently selling its business in the Philippines, six U.S. natural gas-fired plants and its Caribbean operations. The transactions are expected to close by the year's end.
Mirant said it is also considering returning excess cash from sale proceeds to stockholders, or signing a deal with another company, including a possible merger. The company doesn't expect to consider making an acquisition.
"We are commencing this exploration of alternatives in order to provide our stockholders with the greatest possible value," said Edward R. Muller, Mirant's chairman and chief executive officer.
J.P. Morgan is serving as Mirant's financial adviser.
Mirant filed for bankruptcy on July 14, 2003 in Fort Worth, Texas. It emerged from Chapter 11 protection in January after reducing its work force, shaving billions from its rolls and appointing a new chief executive.
The reorganization plan called for converting more than $6 billion of debt and liabilities into equity, and Mirant planned to issue 300 million shares of common stock to its creditors and existing equity holders.
Last month, the international energy company said it earned $1.86 billion, or $6.28 per share, in 2006 on revenue of $3.1 billion.
Its shares rose $2.26, or 5.6 percent, to $42.90 in morning trading on the New York Stock Exchange after briefly rising to a 52-week high of $45.99.
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On the Net:
Mirant: http://www.mirant.com
