Exhibit 99.1
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GRUPO TMM COMPANY CONTACT: KANSAS CITY SOUTHERN CONTACTS:
Brad Skinner Warren K. Erdman
Investor Relations Vice President of Corporate Affairs
011-525-55-629-8725 or 203-247-2420 816-983-1454
(BRAD.SKINNER@TMM.COM.MX) (WARREN.K.ERDMAN@KCSR.COM)
Marco Provencio Gabriel Guerra
Media Relations, Proa/StructurA Media Relations
011-525-55-629-8708 and 011-525-55-442- 4948 011-525-55-273-5359
(MP@PROA.STRUCTURA.COM.MX) (GGUERRA@GCYA.NET)
AT DRESNER CORPORATE SERVICES:
Kristine Walczak (general investors, ANALYSTS AND MEDIA)
312-726-3600
(KWALCZAK@DRESNERCO.COM)
KANSAS CITY SOUTHERN AND GRUPO TMM TO SEEK RECONSIDERATION
OF MEXICAN FOREIGN INVESTMENT COMMISSION DECISION
MEXICO CITY, SEPTEMBER 16, 2004 - KANSAS CITY SOUTHERN (NYSE: KSU) ("KCS") AND
GRUPO TMM, S.A. (NYSE: TMM AND BMV: TMM A) ("TMM") announced today that Mexico's
Foreign Investment Commission ("FIC") delivered a notice that the FIC had
resolved to deny KCS' application for authorization of KCS' proposed acquisition
of TMM's interest in TFM, S.A. de C.V., which operates a major rail freight
carrier in Mexico. The approval of the FIC is necessary for a foreign company to
become a majority owner of a Mexican-based railway company.
KCS and TMM stated that they are disappointed by this decision, and that it is
not in the spirit of the North American Free Trade Agreement ("NAFTA") nor
consistent with previous decisions made by the FIC on foreign majority
ownership, including ownership of another railroad in Mexico.
KCS and TMM are actively involved in discussions with the FIC and believe that
they are close to an agreement to resolve these matters. KCS and TMM will seek
reconsideration of this decision and remain confident that they should
ultimately obtain approval of the transaction. KCS and TMM have agreed to extend
the current deadline under the April 20, 2003 acquisition agreement until June
15, 2005 to provide additional time to complete this transaction.
KCS is a transportation holding company that has railroad investments in the
United States, Mexico, and Panama. Its primary holding is The Kansas City
Southern Railway Company. Headquartered in Kansas City, Missouri. KCS serves
customers in the central and south central regions of the U.S. KCS' rail
holdings and investments are primary components of a NAFTA Railway system that
links the commercial and industrial centers of the United States, Canada and
Mexico.
Headquartered in Mexico City, Grupo TMM is Latin America's largest multimodal
transportation company. Through its branch offices and network of subsidiary
companies, Grupo TMM provides a dynamic combination of ocean and land
transportation services. Grupo TMM also has a significant interest in TFM, which
operates Mexico's Northeast railway and carries over 40 percent of the country's
rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site
is www.tfm.com.mx.
INCLUDED IN THIS PRESS RELEASE ARE CERTAIN FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION
21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. SUCH FORWARD-LOOKING
STATEMENTS ARE BASED ON THE BELIEFS OF TMM'S AND KCS'S MANAGEMENT AS WELL AS ON
ASSUMPTIONS MADE. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE INCLUDED IN
SUCH FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED THAT ALL FORWARD-LOOKING
STATEMENTS INVOLVE RISKS AND UNCERTAINTY. FOR ADDITIONAL INFORMATION RELATING TO
SUCH RISKS AND UNCERTAINTIES, READERS ARE URGED TO REVIEW TMM'S AND KCS'S
RESPECTIVE FILINGS AND SUBMISSIONS WITH THE SECURITIES AND EXCHANGE COMMISSION
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.
IN CONNECTION WITH THE PROPOSED TRANSACTION, KCS WILL FILE RELEVANT MATERIALS
WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC"), INCLUDING AN AMENDED PROXY
STATEMENT SOLICITING STOCKHOLDER APPROVAL OF CERTAIN ACTIONS IN CONNECTION WITH
THE TRANSACTION. STOCKHOLDERS ARE URGED TO READ THE AMENDED PROXY STATEMENT, AS
WELL AS ANY AMENDMENTS AND SUPPLEMENTS TO THE PROXY STATEMENT (IF AND WHEN THEY
BECOME AVAILABLE) AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION. STOCKHOLDERS AND
INVESTORS MAY OBTAIN THE AMENDED PROXY STATEMENT AND ANY OTHER RELEVANT
DOCUMENTS FREE OF CHARGE AT THE SEC'S INTERNET WEB SITE AT WWW.SEC.GOV.
STOCKHOLDERS MAY ALSO OBTAIN FREE OF CHARGE THE AMENDED PROXY STATEMENT AND ANY
OTHER RELEVANT DOCUMENTS BY CONTACTING THE OFFICE OF THE CORPORATE SECRETARY AT
KCS'S PRINCIPAL EXECUTIVE OFFICES AT (816) 983-1538. WRITTEN REQUESTS SHOULD BE
MAILED TO P.O. BOX 219335, KANSAS CITY, MISSOURI 64121-9335 (OR IF BY UNITED
PARCEL SERVICE OR OTHER FORM OF EXPRESS DELIVERY TO 427 WEST 12TH STREET, KANSAS
CITY, MISSOURI 64105). SUCH AMENDED PROXY STATEMENT IS NOT CURRENTLY AVAILABLE.
KCS AND ITS DIRECTORS AND EXECUTIVE OFFICERS MAY BE DEEMED TO BE PARTICIPANTS IN
THE SOLICITATION OF PROXIES FROM KCS STOCKHOLDERS WITH RESPECT TO APPROVAL OF
CERTAIN ACTIONS IN CONNECTION WITH THE TRANSACTION. INFORMATION REGARDING THESE
DIRECTORS AND EXECUTIVE OFFICERS AND THEIR BENEFICIAL OWNERSHIP INTERESTS IN KCS
CAN BE FOUND IN KCS'S PROXY STATEMENT ON SCHEDULE 14A, FILED WITH THE SEC ON
APRIL 5, 2004, IN CONNECTION WITH THE 2004 ANNUAL MEETING OF KCS STOCKHOLDERS.
INVESTORS MAY OBTAIN ADDITIONAL INFORMATION REGARDING THE INTERESTS OF SUCH
PARTICIPANTS BY READING THE AMENDED PROXY STATEMENT FILED IN CONNECTION WITH THE
TRANSACTION WHEN IT BECOMES AVAILABLE.