12:07 PM CST Thursday
KC Southern gets mixed news in Mexican courts
Kansas City Southern announced a victory and a setback Thursday in court battles with the Mexican government regarding Grupo TFM, the railroad KC Southern partly owns and is trying to buy a controlling stake in.
In a tax dispute dating from 1997, the Mexican Federal Appellate Court in November awarded inflation and interest on a tax refund due TFM, KC Southern (NYSE: KSU) said in a written release Thursday. KC Southern said in early 2004 that the refund would total nearly $900 million with the inflation and interest but $200 million without.
KC Southern also said Thursday that the Mexican government has sued TFM and its two private owners, alleging that KC Southern and Grupo TMM had not met their legal obligations in the purchase of TFM. The Mexican government formerly owned all of TFM; it now owns a 20 percent stake.
In mid-December, KC Southern said it had reached a $672 million agreement with Grupo TMM to buy out that company's share of the Mexican railroad.
KC Southern ranks No. 15 on The Business Journal's list of area public companies.
http://www.bizjournals.com/kansascity/s ... ily29.html
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