[Federal Register Volume 62, Number 237 (Wednesday, December 10, 1997)]
[Notices]
[Pages 65127-65128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32269]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33510]
Kansas City Southern Lines, Inc.; Corporate Family Transaction
Exemption; KCS Transportation Company and the Kansas City Southern
Railway Company
Kansas City Southern Industries, Inc. (KCSI), Kansas City Southern
Lines, Inc. (KCSL), the Kansas City Southern
[[Page 65128]]
Railway Company (KCSR), and KCS Transportation Company (KCST) have
jointly filed a verified notice of exemption for KCSL's common control
of KCSR and KCST's rail subsidiaries, Gateway Western Railway Company
(GWWR), and Gateway Eastern Railway Company (GWER).1
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\1\ In addition to invoking the class exemption for this
transaction, KCSI is asking the Board to grant retroactive authority
for a previous transaction--the transfer of the stock of KCSR and
KCST to KCSL--which the parties undertook but for which they sought
no approval from the Board. If KCSI wants to seek Board approval of
that transaction, it should file a separate petition for exemption
(no class exemption provides for retroactive application). Such a
request may not be ``piggybacked'' on this notice.
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The transaction was expected to be consummated on or about November
21, 1997, at which time KCST was to merge into KCSL with KCSL as the
surviving corporation. As a result, KCSR and GWWR will be direct
subsidiaries of KCSL and GWER will be its indirect subsidiary. After
the transaction, KCSL will commonly control KCSR, GWWR, and GWER. KCSL
will also own 49% of the outstanding stock of Mex Rail Corporation, the
parent company of the Texas Mexican Railroad Company and 37% of the
outstanding stock of Grupo TFM, which in turn owns 80% of the
outstanding stock of Transportacion Ferroviaria Mexicana, a Mexican
railroad company.
The parties state that the transaction will take place within the
KCSI corporate family and will not result in adverse changes in service
levels, significant operational changes, or a change in the competitive
balance with carriers outside of the corporate family. Thus, it is the
type of transaction specifically exempted from prior review and
approval under 49 CFR 1180.2(d)(3).
Under 49 U.S.C. 10502(g), the Board may not use its exemption
authority to relieve a rail carrier of its statutory obligation to
protect the interests of its employees. Accordingly, the exemption is
subject to the labor protective conditions set forth in New York Dock
Ry.--Control--Brooklyn Eastern Dist. 360 I.C.C. 60 (1979).
If the verified notice contains false or misleading information,
the exemption is void ab initio. Petitions to reopen the proceeding to
revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time.
The filing of a petition to reopen will not automatically stay the
transaction.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 33510, must be filed with the Surface Transportation
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W.,
Washington, DC 20423-001. In addition, a copy of each pleading must be
served on Robert K. Dreiling, Kansas City Southern Industries, 114 West
11th Street, Kansas City, MO 64105 and William A. Mullins, Troutman
Sanders LLP, 1300 I Street, N.W., Suite 500 East, Washington, DC 20005-
3314.
Decided: December 3, 1997.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-32269 Filed 12-9-97; 8:45 am]
BILLING CODE 4915-00-P
