Got this off another board this morning. Looks like the deal continues to move forward. KANSAS CITY, Mo. & MEXICO CITY--Dec. 15, 2004--Kansas City Southern (NYSE:KSU) ("KCS") and Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMMA) ("TMM") announced today that the companies have entered into an amended acquisition agreement whereby TMM will sell its 51 percent voting interest in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM") to KCS for $200 million in cash, 18 million shares of KCS common stock, $47 million in a two-year promissory note, and up to $110 million payable in a combination of cash and KCS common stock upon successful resolution of the current proceedings related to the VAT Claim and the Put with the Mexican Government. The $47 million promissory note and a portion of the $110 million contingent payment will be subject to certain escrow arrangements to cover potential indemnification claims. The boards of directors of both companies have approved the transaction. As part of the transaction, KCS will also enter into a three-year consulting contract with a consulting firm controlled by Jose Serrano Segovia. KCS and TMM have also agreed that upon completion of the transaction all litigation between the two companies will be dismissed. Consummation of the transaction remains subject to the satisfaction of certain conditions, including KCS shareholder approval. TMM's controlling shareholders have entered into a voting trust providing for approval of the transaction. Both the Mexican Foreign Investment Commission and the Mexican Federal Competition Commission have approved acquisition of the controlling interest in TFM by KCS. Although KCS and TMM previously satisfied the requirements of the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, that authorization has expired and the parties have agreed to file the required information promptly with the U.S. Department of Justice. This authorization is required prior to consummation of the transaction. "We are very pleased to have entered into this amended agreement with TMM, and believe it will enhance rail competition and give shippers in the NAFTA trade corridor a strong transportation alternative in this important and growing trade corridor," said Michael R. Haverty, chairman, president and chief executive officer of KCS. "This transaction, along with our recently approved control of The Texas Mexican Railway Company, offers our shareholders greater value through operating efficiencies and opportunities that will come from common ownership and control. Our customers, both north and south of the border, will benefit from these efficiencies as well." Jose Serrano, chairman and CEO of TMM said, "We're very pleased with the outcome of the transaction. It creates significant value for all shareholders. The combination of KCS and TFM creates an efficient shipping route between the U.S. and Mexico. TMM shareholders will continue to benefit from significant ownership in this valuable franchise. The net cash proceeds of this transaction will be used by TMM to reduce its debt obligations. This transaction is truly in the best interests of TMM shareholders and will ensure long term growth and flexibility at TMM." Javier Segovia, president of TMM said, "We are extremely pleased to become a significant shareholder in KCS, a strong rail alternative between the U.S. and Mexico. TMM and TFM will continue to work closely, and they have entered into a marketing agreement to further our shared goals of providing end-to-end transportation for our customers. In addition, the sale of TFM to KCS puts TMM on a superior financial footing." TFM, S.A. de C.V., the operating subsidiary of Grupo TFM, and KCSR will continue as separate corporations, all under the common control of KCS. Following consummation of the transaction, KCS will continue to operate under the KCS name and will maintain its headquarters in Kansas City, Missouri. Grupo TFM and TFM will remain Mexican corporations, with their corporate headquarters located in Mexico City. TFM holds the concession to operate Mexico's Northeast Rail Lines through June 2047, and has the option to extend the concession for an additional 50 years. The TFM rail network consists of more than 2,600 miles of mainline track. The combined system will exceed 5,300 miles of mainline track. Morgan Stanley acted as exclusive financial advisor to KCS on the transaction. J.P. Morgan Securities Inc. and Elek Moreno Valle y Asociados S.A. acted as exclusive financial advisors to TMM on the transaction. Headquartered in Mexico City, TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. Visit TMM's web site at http://www.grupotmm.com and TFM's web site at http://www.tfm.com.mx. Both sites offer Spanish/English language options. Grupo TMM is listed on the New York Stock Exchange under the symbol "TMM" and Mexico's Bolsa Mexicana de Valores under the symbol "TMM A." KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary holding in the United States is The Kansas City Southern Railway Company. KCS owns 51% of The Texas Mexican Railway Company, which connects The Kansas City Southern Railway Company and TFM. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the United States. KCS' rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States and Mexico. KCS' web site is www.kcsi.com.
I keep wondering- When all is said and done, what will be the fate of the Texas-Mexican? Will it eventually be absorbed into the KCS RR? Or is there something that would prevent such a move? Boxcab E50
http://www.kansascity.com/mld/kansascity/business/10422867.htm?1c mentions that KCS Railway, TFM and TexMex will all be operated as subsidiary railroads under the holding company KCS.
hi , ive had this train since i was a little kid and i would like to know more about it if someone could help me with this i would enjoy the kindness. ive got the engine which is black and on back driver and pass side has the #'s 5208 on it.I also have what i guess is a coal cart or something that says BALTIMORE AND OHIO on driver and pass side of it. On the bottom of the engine it reads RSO atest z-75157 MEHANOTEHNIKA IZOLA and under that it says made in YUGOSLAVIA.The bottom of the coal cart just reads made in yugoslavia. i know nothing about trains just wondering about this one. if you need to know what it looks like i can tell u .I got the train in the mid 80's so its not to old i dont think. thank you sorry if this might be the wrong site let me know and i wont leave such long letters
ME- Welcome to Train Board! You might try placing this post in our "Inspection Pit" Forum. Probably would be the best fit for your question. And possibly would bring more response. Boxcab E50
Funny thing, that's #1408 in Smurf paint scheme up in Kansas City. I just read a post on MexList that reported that #1409, also in Smurf blue, was seen in Los Angeles yesterday. It was in a consist with NS #9339 on point, with TFM #1431 (not sure of paint scheme) and UP #3903. Regards Ed
Yeah, the same gray as KCS, just like the gray that TFM used. Even the logo looks like the KCS logo, see: http://www.tfm.com.mx/ These blue ones are old locos inherited from FNM (NdeM) that they never got around to repainting. Regards Ed
Will they still be lettered "TFM?" Or perhaps KCS, and sublettered on the cabs? Actually, the KCS gray isn't too bad. Looks better than the mess of bNsF....... I'd imagine that KCS will start to phase out older equipment, and upgrade the fleet? Boxcab E50
No, they'll be lettered for KCSdeM. TFM no longer exists. I'm not sure we know exactly how they'll look, best guess seems to be with KCS on the long hood, maybe sublettered KCSdeM, and using the KCSdeM logo. I'd imagine that KCS will start to phase out older equipment, and upgrade the fleet? They've been doing that all along. The name and logo change has just come about since they finally aquired 100% control. Regards Ed
