December 8, 2003
All was on track in August for Kansas City Southern Railroad to
take control of Mexicos most important railroad. Mike Haverty,
chairman, president and chief executive officer of Kansas City, had
struck a deal to buy out his companys ailing Mexican partner,
Grupo Transportación Marítima Mexicana (TMM), and take over a
cross-border railroad that has become a critical artery linking the
US and Mexico.
The heart of the deal:
Mexican railroad TFM
is at the center of a
dispute between its US
and Mexican owners.
TMM, struggling with excessive debt,
One company is high on ambition. The other is deep in
distress. The owners of Mexico’s top railroad now are feuding over
deal gone bad involving a choice asset.