8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): January 6, 2005

Kansas City Southern
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	1-4717	44-0663509
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
427 West 12th Street, Kansas City, Missouri		64105
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 816-983-1303

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[x]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

Kansas City Southern ("KCS","the Company"), is filing under Item 8.01 of this Current Report on Form 8-K the information included as Exhibit 99.1 to this report. Exhibit 99.1 is the Joint KCS and Grupo TMM, S.A. ("TMM") press release dated January 6, 2005, announcing that TFM, S.A. de C.V. ("TFM") was served yesterday with the favorable decision of the Federal Appellate Court, dated November 24, 2004.

TMM and KCS also announced that TMM, Grupo Transportacion Ferroviaria Mexican, S.A. de C.V. ("Grupo TFM"), and TFM have been served with a commercial lawsuit brought before a Mexican Federal Court by the Mexican Federal Government. KCS is also named as a defendant, but it has not yet been served. See the Press Release attached hereto as Exhibit 99.1 for further information.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit No.: (99)
Document: Additional Exhibits

99.1 Press Release issued jointly by Kansas City Southern and Grupo TMM, S.A. dated January 6, 2005 entitled "Grupo TMM and KCS Announce TFM Notification of Favorable VAT Decision and New Lawsuit Brought by the Mexican Federal Government."

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Kansas City Southern
January 6, 2005	By:	James S. Brook
		Name: James S. Brook
		Title: Vice President and Comptroller (Principal Accounting Officer)

Exhibit Index

Exhibit No.	Description
99.1	Press Release issued jointly by Kansas City Southern and Grupo TMM, S.A. dated January 6, 2005 entitled "Grupo TMM and KCS Announce TFM Notification of Favorable VAT Decision and New Lawsuit Brought by the Mexican Federal Government."

EX-99.1

Exhibit 99.1

Grupo TMM Company Contacts:	Kansas City Southern Contacts
Brad Skinner	Media & Investors
Investor Relations	William H. Galligan 816-983-1551
011-525-55-629-8725 or 203-247-2420	Assistant Vice President Investor Relations
Brad.skinner@tmm.com.mx	William.h.galligan@kcsr.com
Proa/StructurA
Marco Provencio	Mexico
Media Relations	Gabriel Guerra 011-525-55-273-5359
011-525-55-629-8708 and 011-525-55-442-4948	Media Relations
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

Grupo TMM and KCS Announce TFM Notification of Favorable VAT Decision and New Lawsuit Brought
by the Mexican Federal Government

Kansas City, MO. January 6, 2005. Grupo TMM, S.A. (BMV: TMM A and NYSE: TMM) (“TMM”) and Kansas City Southern (NYSE: KSU) (“KCS”) announced that TFM, S.A. de C.V. (“TFM”) was served yesterday with the favorable decision of the Federal Appellate Court, dated November 24, 2004. The decision upholds TFM’s claim that it is entitled to inflation and interest from 1997 on the value added tax (“VAT”) refund it received from the Mexican Government. As previously announced, TFM received a VAT refund certificate on January 19, 2004, in the original amount of its claim (approximately 2.1 billion pesos), without any adjustment for accrued inflation or interest. The Federal Appellate Court has remanded the case to the Fiscal Court with instructions to enter a new order consistent with this decision. The notification of this decision represents another step in the process of recovering the VAT refund certificate adjusted for inflation and interest. This decision had been expected and was publicly announced by TMM and KCS on November 29, 2004.

TMM and KCS also announced that TMM, Grupo Transportación Ferroviaria Mexicana, S.A. de C.V. (“Grupo TFM”), and TFM have been served with a commercial lawsuit brought before a Mexican Federal Court by the Mexican Federal Government. KCS is also named as a defendant, but it has not yet been served. The Court refused to accept several claims asserted by the Mexican Government in the lawsuit. The Mexican Government has appealed that decision. The Court accepted for consideration the Mexican Government’s request to determine whether the defendants have complied with all of the legal obligations they assumed during the process of the privatization of Ferrocarril del Noreste, S.A. de C.V. (today, TFM). TMM and KCS believe that this issue is without merit and that they have fully satisfied their legal obligations related to the privatization of TFM.

Notwithstanding the ongoing litigation, TMM and KCS will continue discussions with the Mexican Government aimed at resolving the outstanding disputes between the parties over the value added tax refund and the obligation to purchase the remaining shares of TFM, in accordance with law and the applicable agreements.

# # #

Headquartered in Mexico City, TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. Visit TMM’s web site at http://www.grupotmm.com and TFM’s web site at http://www.tfm.com.mx. Both sites offer Spanish/English language options.

KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary holding in the United States is The Kansas City Southern Railway Company. KCS owns 51% of The Texas Mexican Railway Company, which connects The Kansas City Southern Railway Company and TFM. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the United States. KCS’ rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States and Mexico. KCS’ web site is www.kcsi.com.

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’ 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’ respective filings and submissions with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.