This Railroad Is No Longer A Sideline
What synergy is there between trains and mutual funds? Not much, Kansas City Southern Industries admitted on July 19, when it agreed to sell its century-old railroad to focus on financial services. Pending IRS and Interstate Commerce Commission approvals, Kansas City Southern Railway will be sold to Illinois Central for $1.6 billion in stock and debt, creating the nation's eighth-largest railroad in revenues. The sale would leave the parent company owning Janus Capital, adviser to the $22 billion Janus Funds, and DST Systems, the leading record-keeper for the mutual-fund industry.