Kansas City Southern (KCS) (NYSE: KSU) today announced that its Chairman and Chief Executive Officer, Michael R. Haverty, as part of his long range estate and personal financial planning, has adopted a plan in accordance with Rule 10b5-1 of the Securities Act of 1934 by which he intends to exercise 549,634 of his employee stock options and sell the related shares. The options are scheduled to expire in July 2010. The shares subject to the plan represent less than 20% of the shares of KCS common stock owned beneficially by Mr. Haverty. The plan calls for the shares to be disposed of ratably commencing December 2007 and ending March 2009, provided that a set minimum threshold price per share is met. Similar to most 10b5-1 trading plans, Mr. Haverty may terminate his plan at any time during its term.
Rule 10b5-1 permits officers and directors of public companies to adopt predetermined plans for selling specified amounts of stock. The plans may only be entered into when the officer or director is not in possession of material, nonpublic information and may be used to gradually diversify investment portfolios over a period of time.
The transactions under this plan are to be disclosed publicly through Form 4 and Form 144 filings with the Securities and Exchange Commission.
Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding includes The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico.
Certain statements in this press release including, but not limited to, the timing of the sales to be made under Mr. Haverty’s sales plan, filings to be made with the Securities and Exchange Commission and the number of shares to be sold are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, changes Mr. Haverty may make to his sales plan at a time when he is not in possession of material, non-public information, suspension or termination of the sales plan by either Mr. Haverty or his broker, and other risks detail from time to time in the reports KCS files with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. These forward-looking statements are not guarantees of future performance and speak only as of the date of this release. KCS disclaims any obligation to update these forward-looking statements.
Contacts:
William H. Galligan, 816-983-1551
bgalligan@kcsouthern.com
