(Buyout news) Mexico approves bid by KCS for TFM Railroad.

[jeaton]

Did anyone mention the August, 2003 Trains feature article on KCS? There are discussions of the challenges and oppurtunities for the future.

What is next? You can speculate if you want, but given the maby options there is a good chance that decisions, when made and announce, will differ from your expectations.

Jay

[Anonymous]

1) use of insider information in securities trading is illegal. pick up a copy of "martha stewart living" for the details.
2) rumors and gossip are a part of life in equity markets. misinformation is a way of life. "the inquirer" would be embarrassed to cover wall street.
3) stockholders can in not complacently rely on the hope that the company's management will impliment strategy on the basis of dollars and sense.
executives and their board rooms make decisions based on ego everyday. "king of the hill" occurs in the board room as well as the playground. regularly. "new coke".
4) regarding the difficulty of anticipating movement in securities prices, there is and old story of a trader who was being shown the beautiful sailboat of a well known stock broker, the trader asked, "where are the customers' yachts?"

[Anonymous]

The NAFTA road's crown jewels of value to BNSF include:

The TFM, which KCS had a longstanding binding agreement (finally being implemented, after much Mexican footdragging) to purchase at a rather low stock price that would be roughly half as much as TFM might fetch in an open bidding war. The TFM is the primary conduit for both intermodal, auto parts and finished autos, chemical traffic, and agricultural products between Mexico and the heartland of mid-America. If BNSF had it, I'm quite certain that their marketing people could alter long-haul traffic patterns to their advantage.

The Texas Mexican Ry. connecting the TFM with the KCS (and currently interchanging with BNSF as well) which currently utilizes some rather circuitous UP trackage rights, but has recently purchased some former SP rights-of-way from UP, which the NAFTA road plans to rebuild as a much more direct route by way of Victoria, Texas.

The KCS advantage of accessing the "chemical coast" of east Texas and west Louisiana in a manner that completely avoids the snarling congestion of the greater Houston area. Existing BNSF trackage and trackage rights east of Houston would greatly benefit from getting their traffic in and out of the area without having to traverse the logjams of the greater Houston area.

The "Meridian Speedway" and the Vicksburg gateway, offering the best connections for BNSF from Texas to the NS and CSX trackage in the southern states. Also the enormous chemical complexes in the Shreveport/Baton Rouge/New Orleans corridor.

[daveklepper]

To reach Mexico, doesn't the KCS use some trackage rights on the UP? So for the BNSF to use the KCS profitably and smoothly, they ,would still need UP coperation, wouldn't they? And doesn't most of the TFM traffic end up on the UP before reaching its destination anyway? How much could this change if it were owned by the BNSF? I'm asking these questions based on what I remember from the excellent TRAINS article on Mexican railroads about half a year to a year ago.

[fuzzybroken]

Two points:
1. Nafta Railroad is a horrible name!!! [tdn][banghead][soapbox]
2. KCS/Nafta/whatever + Canadian Pacific would make the perfect end-to-end merger. No overlap of territory, nothing -- now if CP could just get its KC line back from ICE, to by-pass Chicago!!!

[2c][2c],
-Mark Hintz
http://www.geocities.com/fuzzybroken

[jeaton]

Anyone is welcome to correct me if I am wrong, but I believe that anyone who makes a securities transaction based on insider information has violated securities law, even if the person making the transaction is not the "insider".

[oskar]

so KCS takes TFM completeiy or is TFM dead or still alive



kevin

[Anonymous]

Mark: I got my info from an investment banker who deals frequently with several major rail execs. I've since purchased shares in KCS, figuring that their value will go up with whatever eventual takeover premium is offered. I won't reveal the name of my contact, because I really don't reli***he possibility of a nasty call from the SEC, but suffice it to say that his home office is within a reasonable driving distance (or train ride) from your home office. ;^)

[Anonymous]

You don't? Why? Just look what happend when the BN took over the SF,The UP quickly jumped on the SP. What do you mean I don't think so.

[Anonymous]

If the BNSF Railroad does take over you can be DAMN sure that the UP will not like that to kindly,(You can be sure of that). Once the BNSF DOES make it's move,You can G-damn sure the UP will play it's next move next time.
Also:The UP just hates to be the UNDERDOG.

[Anonymous]

The NAFTA road holding company name won't last very long. Even KCS's Mike Haverty has been frequently commenting that he figures that NAFTA road/KCS/TM/TFM will be entering negotiations to be taken over by BNSF within one year (two at the most) after the final consumation of the NAFTA road consolidation, in order to better "stick a thumb into UP's honeypot". It's not exactly been a secret. In fact, I'd probably be willing to bet money that UP's machinations behind the scenes probably contributed significantly towards all of the foot-dragging by the Segovia and Serrano families that so delayed the consumation of the previously agreed upon purchase of TFM/TM by KCS and the formation of the new NAFTA road.

[espeefoamer]

NAFTA=
Naturally
Americans
F(forget this one)
Totally
Again

[Anonymous]

Ya something like that!

[Anonymous]

Toataly Cool !

[MP57313]

QUOTE: Originally posted by BNSF railfan.
plans to create a unified company called NF or what's called Nafta Railroad.

The Trains News Wire item mentioned the extended deadline but not this name. Will it really be called 'NAFTA' or is that just a clever nickname?

[Anonymous]

Wow!

[Anonymous]

Mexican regulators have approved KCS's bid to buy the country's largest Railroad company.(TFM)
The decision clears the way for KCS to buy all of TFM Railroad the company's said Wednesday. The Railroad carries 40% of Mexico's rail freight.
KCS which already held a 37% stake in TFM,plans to creat a unified company called NF or what's called Nafta Railroad. TMM would hold a 22% stake in Nafta Railroad.
The company's announced the $412 million deal in April 2003.