Mirant, an electric utility based in Atlanta, said it is exploring strategic alternatives, including a possible sale of the company. The move comes just 15 months after Mirant emerged from bankruptcy, and nearly a year after its failed attempt to buy competitor NRG Energy. It does not expect to acquire another company as part of its strategic review.

Mirant has been under pressure to return cash to its shareholders. The company, which produces and sells electricity, is expected to complete the sales of its businesses in the Philippines and the Caribbean later this year. It is also in the process of selling six plants in the U.S. One possible alternative could be to return cash from those transactions to shareholders and continue to operate as its own entity, the company said.

Even with the outcome unknown, the news that it is even exploring its options pleased shareholders. Mirant shares were up more than 7 percent in afternoon trading.

Ever since a private equity group bid $32 billion to buy rival TXU Group last month, Mirant has been widely considered a possible takeover candidate. The electric utility business is attractive to private equity dealmakers because it generates a steady cash flow and demand is predictable. However, it is also heavily regulated. This has traditionally been the biggest hurdle for buyout firms in this sector, according to The Wall Street Journal. A green light from regulators for the TXU deal would likely spark more interest in the sector overall from private equity groups.

It is possible that rival utilities may step up to the plate and bid for Mirant as well. Possible strategic buyers might be Dynegy, NRG or Reliant Energy, A.G. Edwards utility analyst Charles Fishman told Reuters.  Mirant’s market capitalization is currently $11.2 billion.

Mirant's board of directors will weigh the options and J.P. Morgan will serve as its adviser. Until a decision is reached, the company said, it will not provide any earnings guidance to Wall Street. In March, the company raised its 2007 earnings projections $1.09 billion from $962 million.