Making a $34 billion bet on the future of the U.S. economy, Warren Buffett's Berkshire Hathaway on T

(3 Nov 2009) HEADLINE:Buffett's Berkshire buying BNSF Railroad
CAPTION:Making a $34 billion bet on the future of the U.S. economy, Warren Buffett's Berkshire Hathaway on Tuesday agreed to buy the Burlington Northern Santa Fe railroad. (Nov. 3)
[Notes:ANCHOR VOICE]

Warren Buffett's Berkshire Hathaway has agreed to buy the Burlington Northern Santa Fe railroad in a $34 billion deal, Buffet's largest ever.
Burlington Northern, the nation's second-largest railroad, is the biggest hauler of food and coal, making it a strong indicator of the country's economic health.
Analysts say the industry is poised to grow as the economy gets back on solid ground and Buffet says the investment is a solid bet on that recovery.
Berkshire Hathaway already owns about 22 percent of the railroad, and is paying $100 a share in cash and stock for the rest of the company. Shareholders still need to approve the deal, which will also faces antitrust scrutiny.
The majority of the stock in the deal will be Berkshire's "A" shares, but Berkshire's board also approved a 50-for-1 split of its Class B common stock for holders who opt for a share exchange rather than cash.
Those Class B shares closed Monday at $3,265. With the split, each share will be worth $65.30.

Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter:   / ap_archive  
Facebook:   / aparchives   ​​
Instagram:   / apnews  


You can license this story through AP Archive: http://www.aparchive.com/metadata/you...