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):
October 20, 1998
KANSAS CITY SOUTHERN INDUSTRIES, INC.
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
114 West 11th Street, Kansas City, Missouri 64105
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code:
(816) 983 - 1303
Not Applicable
(Former name or former address if changed since last report)
Item 5. Other Events
On October 20, 1998, Kansas City Southern Industries, Inc. ("KCSI") announced
that a favorable tax ruling on the initial structure proposed to the Internal
Revenue Service ("IRS") for the spin-off of its Financial Services business
("Spin-off") is not now expected. Accordingly, KCSI has withdrawn its pending
request for a tax ruling. As a result of this action, the Spin-off will not
occur during 1998, as previously contemplated.
KCSI is evaluating alternatives for completion of the Spin-off and plans to
resubmit a request for a ruling to the IRS as soon as an alternative structure
is developed that will allow the Spin-off to be completed with the benefit of a
favorable tax ruling.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Document
(99) Additional Exhibits
99.1 Press Release issued by Kansas City Southern
Industries, Inc. dated October 20, 1998,
entitled, "Kansas City Southern Industries, Inc.
Announces Withdrawal of Request for Tax
Ruling," is attached hereto as Exhibit 99.1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Kansas City Southern Industries, Inc.
Date: November 5, 1998 By: /s/ Louis G. Van Horn
-------------------------------------------
Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)
EXHIBIT 99.1
Contact: KCSI
Landon H. Rowland (816-983-1393) Kansas City Southern Industries, Inc.
Chairman, President and CEO 114 West 11th Street
Kansas City, Missouri 64105
Joseph D. Monello (816-983-1213)
Vice President & Chief Financial Officer NYSE Symbol: KSU
William H. Galligan (816-983-1551) Release No.: 1998-10:
Asst. Vice President-Corporate Affairs Date: October 20, 1998
NEWS RELEASE
KANSAS CITY SOUTHERN INDUSTRIES, INC.
ANNOUNCES WITHDRAWAL OF REQUEST FOR TAX RULING
Kansas City, Missouri
Kansas City Southern Industries, Inc. ("KCSI") announced today that a
favorable tax ruling on the initial structure proposed to the Internal Revenue
Service ("IRS") for the spin-off of its Financial Services business is not now
expected. Accordingly, KCSI has withdrawn its pending request for a tax ruling
but plans to resubmit a request for a ruling as soon as an alternative structure
is developed. As a result, the spin-off will not occur this year, as previously
contemplated.
Joseph D. Monello, Vice President and Chief Financial Officer of KCSI,
stated, "We had asked the IRS to issue a ruling on a structure for the spin-off
that best fit our Company's business needs and met the technical requirements
for a tax-free spin-off. The IRS ultimately decided to exercise its discretion
not to issue an advance ruling because of certain concerns that a structure
similar to ours might be used inappropriately in different circumstances.
Because of the large amount of tax that could be owed if the spin-off were not
tax-free to the Company and its stockholders, it is not prudent to proceed with
a spin-off as proposed without a private letter ruling."
Landon H. Rowland, Chairman, President and Chief Executive Officer of KCSI,
stated, "The Company remains fully committed to the separation of the KCSI
Transportation and Financial Services businesses. We plan to move ahead with the
spin-off as promptly as possible using a structure that meets our business
objectives without risking adverse tax consequences. The Company is studying
alternatives for completion of the spin-off and expects to amend and resubmit
our ruling request and continue to work with the IRS until the spin-off can be
completed with the benefit of a favorable tax ruling."
. . . . The End
