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The story on TFM RR goes something like this. Approx a year ago, KCS offered to by TFM. The TFM board agreed. As the time came to close the deal the TFM shareholders voted to not sell to the KCS. KCS then took legal action to force the deal, based on the earlier agreement. The matter is currently being arbitrated in New York State and the outcome is expected by summer. That's the surface story. <br /> <br />What's interesting is that there are two people who own the majority of TFM. TFM RR is actually owned by another company called Grupo Mexico. They originally agreed, but then they were the "majority stock owners" who later disagreed. They owned all but about the last 25% of TFM, which was still owned by the Govt. of Mexico. They were expected / required to buy that last portion out this year. There were questions raised in industry publications about their ability to service the existing dept + take on new debt for the remaining stock. However, as this was unfolding, the Govt announced that it would pay approximately $1billion to the TFM owners in regard to principal and interest in an outstanding tax dispute. About the time that this was announced is when the owners reversed field and refused to close the deal. Not surprising given that they suddenly had a supply of cash coming their way that could presumably help them keep the RR afloat financially. <br /> <br />Either way it turns out, it should be decided in 3 months or so.
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