Mirant announces stockholder rights plan

By Lisa Kerner

Charlotte, N.C., March 26 - Mirant Corp.'s board of directors adopted a stockholder rights plan to protect the use of the company's federal net operating losses from some restrictions contained in Section 382 of the Internal Revenue Code.

The plan is not intended for defensive, anti-takeover purposes, according to a Mirant news release.

"Once the plan is no longer needed for the preservation of NOLs, the board intends to terminate the rights plan," Mirant president and chief executive officer Edward R. Muller said in the release.

Mirant's ability to use its NOLs can be negatively affected if there is an ownership change. An ownership change generally occurs if certain shifts in ownership of the company's stock exceed 50% over a specified period of time, the company said.

According to Mirant, the stockholder rights plan was adopted to reduce the likelihood of an unintended ownership change occurring.

The rights are triggered when a person or group obtains beneficial ownership of 4.9% or more of Mirant's common stock or when an existing holder with greater than 4.9% ownership acquires more shares representing at least an additional 0.2% of the company's common stock.

Mirant is an Atlanta-based energy company.

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