Transient mid-infrared spectroscopy is used to probe the dynamics initiated by excitation of ligand-to-metal (400 nm) and metal-to-ligand (345 nm) charge transfer states of Fe-III complexed with acetylacetonate (Fe(acac)(3), where acac stands for deprotonated anion of acetylacetone) in solution. Transient spectra in the 1500-1600 cm(-1) range show two broad absorptions red-shifted from the bleach of the nu(CO) (approximate to 1575 cm(-1)) and nu(CC) (approximate to 1525 cm(-1)) ground state absorptions. Bleach recovery kinetics has a time constant of 12-19 ps in chloroform and tetrachloroethylene and it decreases by 30-40% in a 10% mixture of methanol in tetrachloroethylene. The transient absorptions experience band narrowing simultaneously with blue-shifting of the absorption maxima. Both phenomena have time constants of 3-9 ps with no evident dependence on the solvent. The experimental observations are ascribed to fast conversion of the initially excited charge transfer states to the ligand field manifold, and subsequent vibrational cooling on the lowest ligand field excited state prior to electronic conversion to the ground state. The analysis of time dependent bandwidths and positions of the transient absorptions provides some evidence of mode specific vibrational cooling.