Berkshire Hathaway to buy BNSF

Trains Magazine General Discussion
1

This news was announced just this morning. We plan to have updates on our news wire throughout the day, but we wanted to let you know the basics as quickly as possible.

Berkshire Hathaway to acquire Burlington Northern Santa Fe Corp.

  • The boards of directors of Berkshire Hathaway Inc. and Burlington Northern Santa Fe Corp., (stock symbol BNI) operator of the BNSF Railway, today announced a definitive agreement for Berkshire Hathaway to acquire for $100 per share in cash and stock the remaining 77.4 percent of outstanding BNI shares not currently owned. The purchase will increase ’s holdings in BNSF to 100 percent.

The transaction is valued at approximately $44 billion, including $10 billion of outstanding BNSF debt, making it the largest acquisition in Berkshire Hathaway history.

“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, must grow and prosper for railroads to do well. ’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 ,” Buf

2

…Wow, that sounds really aggressive. He must have good confidence in the system {and economy}, to opt for now 100% ownership…!

Sure sounds possitive for that massive RR system,

3

I agree, wow.

4

This may or may not be good news…What is Bershires Hathaways track records with the other busisness that they have taken control of ? Other then GEICO? What about Krispy Kream?

5

As has been mentioned elsewhere, Warren Buffet is not an activist investor or corporate raider type who will meddle in the management of his investment.

6

As Don Phillips has said before,

“Go out, and take some pictures.”

7

Justin, are you expecting a different paint scheme? Maybe less expensive and more tasteful? The name isn’t going to change.

8

I am unaware of any relationship between Berkshire and Krispy Kream. Indeed, a competitor in the same general retail space – Dairy Queen – is a Berkshire company.

9

The Berkshire BNSF investment is long-term, long-haul.

This says nothing but great things about the future of railroads and indeed the future of the economy.

10

Oh - maybe to BHSF instead ? [swg]

11

…And another “good one”…