friscobob
August 8th, 2003, 11:45 PM
From the AP wire reports:
KCS Gets US Dept. of Justice Green Light to Proceed with NAFTA Rail
Kansas City Southern has cleared the Justice Department's regulatory
hurdle in its attempt to acquire full ownership of Mexico's biggest
railroad. The 30-day period during which the Justice Department
could request further information about Kansas City Southern's
proposal to create the NAFTA Rail company expired Thursday without
an inquiry, Kansas City Southern said Friday.
Kansas City Southern is seeking to buy out its Mexican partner,
Grupo TMM, which currently has controlling interest in Grupo TFM.
Grupo TFM operates Mexico's Northeast rail line.
Michael R. Haverty, Kansas City Southern's chairman and chief
executive officer, said the company was gratified that the Justice
Department had decided to allow the transaction to proceed without
further informational requests. "We believe that NAFTA Rail will
enhance competition in Mexico and the United States and improve rail
service for shippers in the vitally important North American rail
corridor," Haverty said in a written statement.
The transaction still needs the approval of the Foreign Investment
Commission in Mexico, the shareholders of both companies and Grupo
TMM bondholders. Also on Thursday, Haverty testified before the U.S.
Surface Transportation Board on Kansas City Southern's plan to
acquire full ownership of the Texas Mexican Railway Co. as part of
the NAFTA Rail transaction. Kansas City Southern is before the
Surface Transportation Board seeking to place the Kansas City
Southern Railway Co., Gateway Eastern Railway Co. and the Tex Mex
under common control.
A decision by the Surface Transportation Board is expected by
October 17.
KCS Gets US Dept. of Justice Green Light to Proceed with NAFTA Rail
Kansas City Southern has cleared the Justice Department's regulatory
hurdle in its attempt to acquire full ownership of Mexico's biggest
railroad. The 30-day period during which the Justice Department
could request further information about Kansas City Southern's
proposal to create the NAFTA Rail company expired Thursday without
an inquiry, Kansas City Southern said Friday.
Kansas City Southern is seeking to buy out its Mexican partner,
Grupo TMM, which currently has controlling interest in Grupo TFM.
Grupo TFM operates Mexico's Northeast rail line.
Michael R. Haverty, Kansas City Southern's chairman and chief
executive officer, said the company was gratified that the Justice
Department had decided to allow the transaction to proceed without
further informational requests. "We believe that NAFTA Rail will
enhance competition in Mexico and the United States and improve rail
service for shippers in the vitally important North American rail
corridor," Haverty said in a written statement.
The transaction still needs the approval of the Foreign Investment
Commission in Mexico, the shareholders of both companies and Grupo
TMM bondholders. Also on Thursday, Haverty testified before the U.S.
Surface Transportation Board on Kansas City Southern's plan to
acquire full ownership of the Texas Mexican Railway Co. as part of
the NAFTA Rail transaction. Kansas City Southern is before the
Surface Transportation Board seeking to place the Kansas City
Southern Railway Co., Gateway Eastern Railway Co. and the Tex Mex
under common control.
A decision by the Surface Transportation Board is expected by
October 17.