KCS shareholders OK acquisition of TFM
(The Associated Press circulated the following story on March 29.)
KANSAS CITY, Mo. -- Railroad company Kansas City Southern Industries Inc. said Tuesday its shareholders have approved its acquisition of Mexican rail line Transportacion Ferroviaria Mexicana, or TFM.
Kansas City Southern, which will pay transportation company Grupo TMM $660 million in cash and stock for its 51 percent share in the railroad, said it will complete the purchase and take over TFM on April 1.
The vote ends a long series of legal and financial wrangling for TFM, the largest railroad company in Mexico, which Kansas City Southern plans to fold into its existing system under the new name Nafta Rail.
Shareholders on Tuesday approved issuing 18 million shares of common stock in conjunction with the acquisition, in addition to other shares in certain circumstances.
Kansas City Southern shares fell 49 cents, or 2.6 percent, to close at $18.65 in Tuesday trading on the New York Stock Exchange. The stock has been trading at a 52-week range of $12.60 to $20.34.
Wednesday, March 30, 2005
