Ends Proxy FightKANSAS CITY, Mo. - Kansas City Southern Industries Inc. said it reached a settlement with a dissident shareholder group that had announced a proxy fight several weeks ago.
The railroad holding company bought 694,000 of its shares from Carol Management Corp. for $41 million. Carol and Howard Kaskel, who heads up the real estate investment company, also sold 600,600 shares of KCSI stock for $36 million to Hallmark Cards Inc., of Kansas City.
The $60 a share payment represents the average price paid by Carol Management for its holding. The Kaskel group no longer owns any KCSI stock, the company said Monday.
Carol also agreed it would not acquire any more KCSI securities for a three-year period. KCSI agreed that if certain transactions are proposed before year-end - such as sale of KCSI - that result in the stock being valued higher than $60, Carol will share in that increased value. KCSI said it has no
plans for a transaction that would lead to a payment higher than $60 a share to Carol.
Landon Rowland, KCSI's president and chief executive officer, said the company would proceed with its efforts to gain control of Southern Pacific Transportation Co. SPT is being sold by Santa Fe Southern Pacific Corp. to Rio Grande Industries Inc. KCSI is fighting the sale before the Interstate Commerce Commission and Carol Management has opposed efforts to acquire the western railroad.
Irvine O. Hockaday Jr., chief executive officer of Hallmark, and a former chief executive officer of KCSI, resigned from KCSI's board to avoid regulatory problems.
Ford Set to Serve
DEARBORN, Mich. - Ford Motor Co. said that its Heavy Truck Beverage program, now in its second year, is offering quick delivery to beverage haulers from a pool of over 200 models, pre-engineered for most beverage applications.
Each Work-Ready model purchased under the program comes with Ford Heavy Truck's extended service coverage at no extra charge, valued at up to $950 suggested list price, according to the company.
The program is aimed at giving the beverage industry an opportunity to take delivery of new trucks before the start of the busiest part of its year, Ford said.