Mirant to return $4.6 billion to stockholders

By Lisa Kerner

Charlotte, N.C., Nov. 9 - Mirant Corp. plans to return $4.6 billion in excess cash to shareholders.

The decision to return the cash is "the best course of action at this time" and came "after a thorough exploration process," chairman and chief executive officer Edward R. Muller said in a company news release.

Mirant said the first stage of the process will consist of an accelerated share repurchase program for $1 billion together with open market purchases for an additional $1 billion. The company will then decide how to return additional cash once the accelerated share repurchase is complete.

JPMorgan will borrow and deliver to Mirant approximately 24 million shares on Nov. 13. The accelerated share repurchase is subject to an adjustment that Mirant will settle in cash or shares.

The Atlanta-based competitive energy company announced in April that it would explore strategic alternatives to enhance stockholder value.

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