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Rail News: Financials

Grupo TMM sells 18 million shares of KCS common stock

Yesterday, Kansas City Southern announced its largest stockholder, Grupo TMM S.A., has sold all 18 million shares of KCS common stock — which TMM acquired by selling its share of TFM S.A. de C.V. to KCS in April — to Morgan Stanley & Co. for $22.25 per share.

Morgan Stanley has issued a public offering of 9 million shares of KCS common stock at $23.25 per share and will sell the remaining 9 million shares to KCS.

KCS has priced a public offering of $210 million of its 5.13 percent cumulative convertible perpetual preferred stock at a liquidation preference of $1,000 per share. The Class I plans to use net proceeds to purchase the 9 million shares.

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More News from 12/6/2005