If Janus Ain't Broke

What is moving Kansas City Southern Industries Inc. (KCSI) forward is cash pouring into Janus mutual funds because of the huge investment returns earned by Janus portfolio managers. KCSI owns 82% of Janus Capital Corp., the funds' management company. Now KCSI wants to spin off Janus, Berger Associates Inc. and assorted other financial properties into a new holding company called Stilwell Financial, while keeping Stilwell under its control. Most on Wall Street believe the Stilwell spin-off will happen, but KCSI should think again. What is best for KCSI's shareholders may not be what is the best for Janus investors.