Thursday, June 01, 2006

Pirate Capital Discloses 1.6% Stake in Mirant (MIR), Urges Not to Enter Bidding War for NRG and Put Itself Up for Sale

In a 13D filing, Pirate Capital LLC disclosed a 1.6% stake in Mirant Corp. (NYSE: MIR). The group said on June 1st it sent a letter to the company advising the Board of Directors that it does not believe that entering into a hostile bidding war for NRG (NYSE: NRG) is in the best interest of the Issuer's shareholders, questioning whether Mirant should be a consolidator, and urging the Board to engage a financial advisor and initiate a process to put itself up for sale.

A copy of the letter disclosed in the filing:

"June 1, 2006


Edward R. Muller
Chairman and Chief Executive Officer
Mirant Corporation
1155 Perimeter Center West
Suite 100
Atlanta, GA 30338

Mr. Muller:

Pirate Capital LLC, as the investment advisor to Jolly Roger Fund LP and JollyRoger Offshore Fund LTD, is the beneficial owner of approximately 5 millionshares, or 1.6%, of the common stock of Mirant Corporation ("Mirant" or the"Company"). In addition to becoming one of the largest equity owners of theCompany, we have been a creditor of the Company since 2003. We are concerned bythe offer made to acquire NRG Energy, Inc. ("NRG").

We do not believe that entering into a hostile bidding war for NRG is in thebest interest of Mirant shareholders. While we believe that consolidation in thepower sector is necessary, we question whether Mirant should be a consolidator.Mirant's reported first quarter 2006 earnings and outlook give proof to thestrength of its assets. We believe shareholders would be substantially rewardedif Mirant put itself up for sale.

We strongly urge Mirant to engage a financial advisor to begin a process to sellitself. We also request a meeting with the Company's Board of Directors tofurther discuss these matters.

Kindest Regards,

/s/ Thomas R. Hudson Jr.

Thomas R. Hudson Jr.
Portfolio Manager
cc: Mirant Board of Directors"


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