To: stockman_scott who wrote (152442 ) 1/27/2000 11:24:00 PM From: Sr K Read Replies (1) | Respond to of 176387
Janus Capital is not a fund and the deal is a private transaction.kcsi.com Answers To Frequently Asked Questions About Kansas City Southern Industries' (KCSI) Upcoming Spin-off Q: What is the status of the spin-off of the Financial Services businesses of KCSI? A: KCSI is planning to complete the separation of the Financial Services businesses under a new holding company named Stilwell Financial as soon as practical after completion of the recapitalization of KCSI's transportation businesses. A KCSI press release dated December 6, 1999, provides additional information regarding the company's process to complete the spin-off. Q: Which companies make up Stilwell Financial? A: The companies that comprise Stilwell Financial are: Janus Capital Corporation (owned by KCSI since 1984), Berger LLC (owned by KCSI since 1992), Nelson Money Managers, PLC (owned by KCSI since 1998), and a 32 percent stake in DST Systems, Inc. (founded by KCSI in 1968). All of the operations involve aspects of financial services. All are being spun off together into a single entity to be called Stilwell Financial because such a transaction is what the IRS approved. Q: Why is Janus Capital Corp. part of Stilwell Financial instead of being spun off separately? A: After a thorough review, the Board of Directors of KCSI decided that the plan to spin off KCSI's financial services companies under the name Stilwell Financial was the preferred plan. The decision was based on the favorable tax ruling the IRS had granted the Stilwell Financial distribution; the lack of certainty that a favorable tax ruling could be obtained in a timely manner, or at all, on the alternative proposal offered; the absence of persuasive evidence that the alternative plan was more advantageous; and, the belief that the original spin-off distribution was more consistent with the strategic direction of Stilwell. Q: Will Janus be re-named Stilwell Financial? A: NO. The separate companies which comprise Stilwell Financial ? Janus Capital Corp., Berger LLC, and Nelson Money Managers, PLC ? will maintain their own separate identities just as they do now under the KCSI holding company. The spin-off will not cause any name changes for the financial services companies or any changes to their corporate structures or management teams. Q: What impact will the spin-off of Stilwell Financial have on individuals who own shares in the Janus family of mutual funds? A: The spin-off of Stilwell Financial from KCSI should not impact investors in the Janus family of mutual funds who may continue to hold their Janus funds just as in the past. <<Nothing like a little Midwestern perspective>> ???