KCS WANTS WIDER PROBE OF RIO GRANDE BACKERS

KCS WANTS WIDER PROBE OF RIO GRANDE BACKERS

Kansas City Southern Industries Inc. has asked the Interstate Commerce

Commission to treat Philip F. Anschutz and Morgan Stanley Group Inc. as applicants in the Denver & Rio Grande Western Railroad's bid to acquire the Southern Pacific Transportation Co.

KCS, the primary losing bidder for the right to acquire the Southern Pacific from the Santa Fe Southern Pacific Corp., has asked the ICC to reject the Rio Grande bid and declare it the more appropriate owner of the Western railroad.KCS' latest move would require the disclosure of more information by Mr. Anschutz, the sole owner of the company that owns Rio Grande Industries, and Morgan Stanley, which will be the Rio Grande's partner in the Southern Pacific.

Mr. Anschutz has refused to comply with KCS demands for more financial data on his dealings, since, he has said, he is not a direct party to the proposal.

Rio Grande Industries, which owns the like-named railroad, is solely owned by the Anschutz Corp.; Mr. Anschutz is believed to be the only stockholder in that company.

KCS, which owns the Kansas City Southern Railway, told the ICC in its new filings that without the additional information that would result from adding Mr. Anschutz and Morgan Stanley to the case, it wouldn't have enough information to act on the sale proposal.

According to KCS: The Anschutz parties categorically refuse to respond to discovery requests it has made.

A discovery-status hearing at the ICC earlier this week failed to resolve the dispute over KCS' requests for more personal financial data from Mr. Anschutz.

Attorneys for Mr. Anschutz have stated that he will not provide the data

because he feels it is not germane.

Mr. Anschutz has continually sought to avoid publicity, and aides said one reason he agreed to sell Morgan Stanley a 25 percent interest in the Southern Pacific was to insulate himself further from KCS' demands that he reveal more personal data.