[Federal Register Volume 59, Number 5 (Friday, January 7, 1994)]
[Notices]
[Pages 1028-1029]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-287]
[[Page Unknown]]
[Federal Register: January 7, 1994]
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INTERSTATE COMMERCE COMMISSION
[Finance Docket No. 32405]
The Kansas City Southern Railway Company--Merger Exemption--
MidSouth Corporation, MidSouth Rail Corporation, SouthRail Corporation,
MidLouisiana Rail Corporation, and TenRail Corporation; Notice of
Exemption
On December 20, 1993, The Kansas City Southern Railway Company
(KCSR), a class I common rail carrier, and MidSouth Corporation (MSC),
a noncarrier, and its common carrier rail subsidiaries described below,
jointly filed a notice of exemption under 49 CFR 1180.2(d)(3), for: (1)
The merger of MSC and its subsidiaries1, with MSC being the
surviving entity and (2) the subsequent merger of MSC and KCSR, with
KCSR being the surviving entity.
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\1\MidSouth Rail Corporation (MSR), SouthRail Corporation (SR),
MidLouisiana Rail Corporation (MLR), and TenRail Corporation (TR).
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KCSR, a class I carrier, and MSC, a regional railroad holding
company that provides freight transportation through its common carrier
subsidiaries, are both wholly owned subsidiaries of Kansas City
Southern Industries, Inc. (KCSI).2
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\2\On June 7, 1993, K&M Newco., Inc. (K&M), a wholly owned
subsidiary of KCSI, acquired all of the outstanding stock of MSC.
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MSR, a class II carrier, and TR, a class III carrier, are wholly
owned subsidiaries of MSC. MLR, a class III carrier, is a wholly owned
subsidiary of MSR. SR is a class II carrier with all of its stock owned
by MSC (25 shares) and MSR (15 shares).
The parties intend to consummate the proposed merger transactions
on January 4, 1994.3
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\3\As stated in the agreements attached as exhibits to the
notice, the effective date of the merger of MSC with its
subsidiaries will be December 31, 1993, and the effective date of
the merger of MSC into KCSR will be January 4, 1994.
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Because the parties are members of the same corporate family, and
apparently the mergers will not result in adverse changes in service
levels, significant operational changes, or a change in the competitive
balance with carriers operating outside the corporate family, the
transaction qualifies for the class exemption at 49 CFR 1180.2(d)(3).
The purpose of the transactions is to eliminate duplicative
recordkeeping, filing, and reporting requirements and to render more
efficient current billing and car reporting processes.
To ensure that all employees who may be affected by the
transactions are given no less than the minimum protection under 49
U.S.C. 10505(g)(2) and 11347, the labor conditions set forth in New
York Dock Ry.--Control--Brooklyn Eastern Dist., 360 I.C.C. 60 (1979)
are imposed.
Petitions to revoke the exemption under 49 U.S.C. 10505(d) may be
filed at any time. The filing of a petition to revoke will not stay the
transaction. Pleadings must be filed with the Commission and served on:
Robert K. Dreiling, The Kansas City Southern Railway Company, 114 West
11th Street, Kansas City, MO 64105.
Decided: December 29, 1993.
By the Commission, David M. Konschnik, Director, Office of
Proceedings.
Sidney L. Strickland Jr.,
Secretary.
[FR Doc. 94-287 Filed 1-6-94; 8:45 am]
BILLING CODE 7035-01-P
