EXHIBIT 99.1
KCSI
Kansas City Southern Industries, Inc.
114 West 11th Street
Kansas City, Missouri 64105
NYSE Symbol: KSU
Release No. 2000-09 June 15, 2000
Media Contact: Kekst & Co.
Robert Siegfried (212-521-4832)
Michael Herley (212-521-4897)
Investors Contact:
Landon H. Rowland (816-218-2416)
Chairman, President & CEO
Joseph D. Monello (816-218-2411)
Vice President & CFO
NEWS RELEASE
KANSAS CITY SOUTHERN INDUSTRIES BOARD APPROVES SPIN-OFF
OF ITS FINANCIAL SERVICES BUSINESS
FINANCIAL SERVICES BUSINESS TO BE KNOWN AS STILWELL FINANCIAL INC. AND
WILL TRADE ON THE NYSE UNDER THE SYMBOL "SV"
Kansas City, Missouri, June 15, 2000 - Kansas City Southern Industries, Inc.
("KCSI" or the "Company") (NYSE: KSU) today announced that its Board of
Directors approved the Company's spin-off of its financial services subsidiary,
Stilwell Financial Inc., to its common stockholders. Stilwell Financial has
received approval, subject to notice of issuance, to have its common stock
listed on the New York Stock Exchange under the symbol "SV" and expects its Form
10 Registration Statement filed with the Securities and Exchange Commission to
become effective today.
Following effectiveness of the Form 10, the spin-off will occur through a
special dividend to be distributed on July 12, 2000 to KCSI common stockholders
of record on June 28, 2000. Stockholders will receive 2 shares of common stock
of Stilwell Financial for every 1 share of KCSI common stock owned on the record
date. The total number of Stilwell Financial shares to be distributed will
depend on the number of shares of KCSI common stock outstanding on the record
date. Based on the number of shares of KCSI common stock outstanding as of March
31, 2000, approximately 222.8 million shares of Stilwell Financial common stock
will be distributed.
A copy of an Information Statement giving details of the transaction and
providing information about Stilwell Financial will be mailed to all record date
KCSI common stockholders.
The Internal Revenue Service has ruled that the spin-off will not be taxable for
Federal income tax purposes to KCSI or KCSI shareholders.
Landon H. Rowland, Chairman, President and Chief Executive Officer of KCSI,
said, "The separation of KCSI's financial services and railroad businesses will
realize shareholder value by creating two pure investment opportunities with
their own resources, management teams and business strategies. KCSI has a
well-established record of achieving attractive returns for shareholders, and
this spin-off reflects the Board's priority to continue to build value for the
Company's shareholders."
The primary entities comprising Stilwell Financial are Janus Capital
Corporation, an approximately 81.5% owned subsidiary; Berger LLC, an
approximately 86% owned subsidiary; Nelson Money Managers Plc, an 80% owned
subsidiary; DST Systems, Inc., an equity investment in which Stilwell Financial
holds an approximately 32% interest, and miscellaneous other subsidiaries and
equity investments.
KCSI stockholders previously approved a reverse split of KCSI common stock to be
effective upon completion of the spin-off. Accordingly, on July 12, 2000 each 2
shares of KCSI common stock will be converted into 1 share of KCSI common stock.
The reverse stock split will reduce the total number of KCSI common shares
outstanding after the spin-off is effective, from approximately 111.4 million
shares to approximately 55.7 million, with the exact number depending on the
number of shares of KCSI common stock outstanding on July 12, 2000.
KCSI common stockholders of record on July 12, 2000 will be provided letters of
transmittal for surrendering their old certificates in exchange for new
certificates reflecting the reverse split.
KCSI's Board of Directors also declared a quarterly dividend of 25 cents per
share on the outstanding KCSI preferred stock. This dividend is payable on July
5, 2000 to preferred stockholders of record at the close of business on June 26,
2000.
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This press release includes statements concerning potential future events
involving the Company, which could materially differ from the events that
actually occur. The differences could be caused by a number of factors including
those factors identified in KCSI's December 31, 1999 Form 10-K and the Current
Report on Form 8-K/A dated June 3, 1997, each filed by the Company with the
Securities & Exchange Commission (Commission file no. 1-4717). The Company will
not update any forward-looking statements in this press release to reflect
future events or developments.
............The End
