30.11.2004: Meldung: Kansas City Southern Control Application Approved
"We are very pleased that the STB has approved our application to control Tex Mex and the U.S. side of the Laredo Bridge," said Michael R. Haverty, chairman, president and chief executive officer of KCS. "This approval will allow us to move forward with our effort to bring better, more competitive rail service to NAFTA shippers in the NAFTA trade corridor as well as provide better rail service in south Texas."
The decision becomes effective in 30 days, at which time KCS will dissolve the voting trust and obtain control of Mexrail and its assets, including Tex Mex. In reaching its decision, the STB did not impose any conditions unacceptable to KCS, and rejected almost all of the conditions requested by competing carriers that had filed objections to the transaction. As a result, the transaction will now go forward as KCS had proposed in its application to the STB and will be made final as of December 29, 2004.
KCS also announced today that counsel for TFM, S.A. de C.V. (TFM) has been advised by the Fourth Collegial Tribunal for Administrative Matters of the First Circuit (Tribunal) that it has sustained TFM"s complaint arising out of the failure of the Treasury of the Federation to adjust the value added tax (VAT) refund certificate issued to TFM to reflect interest and inflation. As previously announced by Grupo TMM, S.A. (TMM) and KCS, TFM received the VAT refund certificate in its original face amount of approximately 2.111 billion pesos from the Treasury of the Federation on January 19, 2004. When the Treasury of the Federation refused TFM"s request to actualize the VAT refund certificate in accordance with Article 22 of the Mexican Fiscal Code of 1997, TFM sought judicial relief.
TFM has not yet been served with the written decision of the Tribunal, but reports of the Tribunal"s decision have appeared in the Mexican Press and TMM has reported the decision to the Mexican Stock Exchange. Until TFM is formally notified of the Tribunal"s written decision, KCS cannot make any statements concerning the scope of the decision or its possible implications. As soon as written notification is received by TFM of the decision, KCS will proceed to analyze it and issue a statement to the public.
KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary holding is The Kansas City Southern Railway Company. 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, Canada and Mexico.
Included in this press release are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of KCS" management as well as on assumptions made. Actual results could differ materially from those included in such forward-looking statements. Readers are cautioned that all forward-looking statements involve risks and uncertainty. For additional information relating to such risks and uncertainties, readers are urged to review KCS" filings and submissions with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Kansas City Southern
Warren K. Erdman, 816-983-1454
William H. Galligan, 816-983-1551