How much money is Berkshire buying Burlington Northern railroad (AP)?”
NEW YORK – The biggest name in investing is making what he calls an “all-in wager” on the U.S. economy — $34 billion to own a railroad that hauls everything from corn to cars across the country. The acquisition of Burlington Northern Santa Fe, the nation’s second-largest railroad, would be the biggest ever for Warren Buffett’s Berkshire Hathaway investment company. It’s a natural fit for the Oracle of Omaha, a city with a special place in railroad history. It was the starting point for the westward push of the transcontinental railroad. Today, Omaha is the headquarters of Union Pacific, and BNSF trains rumble through every day. In a statement, Buffett, whose investing decisions are carefully scrutinized by the world of finance, voiced confidence in the railroad industry. “Most important of all, however, it’s an all-in wager on the economic future of the United States. I love these bets,” he said Tuesday. Berkshire Hathaway Inc. already owns a 22 percent stake in Burlington Northern and
Berkshire buying Burlington Northern railroad NEW YORK — Making a $34 billion bet on the future of the U.S. economy, Warren Buffett’s Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp. “Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry,” Buffett said in a statement. “Most important of all, however, it’s an all-in wager on the economic future of the United States. I love these bets,” he said. Berkshire Hathaway ( BRK – news – people ) already owns about 22 percent of Burlington Northern, and said it will pay $100 a share in cash and stock for the rest of the company, a 31.5 percent premium on Burlington Northern’s Monday closing price. Shareholders have the option to convert their stock for a cash payment of $100 per share or receive Berkshire Class A or Class B common stock. Up to 60 percent of the deal is cash and 40 percent is in stock. The majority of the stock in the deal
