Buffet’s Berkshire Hathaway to buy Burlington Northern
November 3rd, 2009 - 9:55 pm ICT by Aishwarya Bhatt ( Leave a comment )Fort Worth, Nov 3 (THAINDIAN NEWS) Warren Buffett’s Berkshire Hathaway(NYSE:BRK.A) announced that it would buy the remaining stake in railroad giant Burlington Northern Santa Fe(NYSE:BNI). This particular deal is estimated at approximately $44 billion, including $10 billion of outstanding BNSF debt, making it the largest acquisition in Berkshire Hathaway’s extravagant history.
Warren Buffet is offering $100 per share, whereas the original price of the share was $76, so the shareholders are getting a good premium. Warren Buffet’s Berkshire Hathaway already owned a 20% stake in the company earlier, and now it is acquiring the leftover stake as well.
The company released a press statement, ‘“Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer. “Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry.
“Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett. “I love these bets.”’
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