QUOTE
Berkshire to buy rest of Burlington Northern
The deal is valued at $44 billion, including debt.
Warren Buffett's Berkshire Hathaway (BRK.A) this morning said it is paying $100 per share to buy the 77.4% of the railroad company Burlington Northern Santa Fe (BNI) that it does not already own.
The deal, the biggest ever for the Oracle of Omaha, includes $10 billion in Burlington Northern debt, which puts the total value of the deal at $44 billion. It values Burlington shares at a 30% premium to Monday's closing price.
"Our country's future prosperity depends on its having an efficient and well-maintained rail system," Buffett said in a press release. "Conversely, America must grow and prosper for railroads to do well."
Shares of Burlington Northern jumped $10.46, or 21.5%, to $57.80 on the news.
The deal will be 40% stock, 60% cash. Berkshire Hathaway's board of directors approved a 50-for-1 split of its Berkshire Hathaway (BRK.
Class B common stock in order to "accommodate holders of smaller amounts of BNSF shares who opt for a share exchange rather than a cash payment."
The deal is "an all-in wager on the economic future of the United States. I love these bets," Buffett said.
"America is about business," Buffett told CNBC. "Business will always be important to the American public."
The deal is valued at $44 billion, including debt.
Warren Buffett's Berkshire Hathaway (BRK.A) this morning said it is paying $100 per share to buy the 77.4% of the railroad company Burlington Northern Santa Fe (BNI) that it does not already own.
The deal, the biggest ever for the Oracle of Omaha, includes $10 billion in Burlington Northern debt, which puts the total value of the deal at $44 billion. It values Burlington shares at a 30% premium to Monday's closing price.
"Our country's future prosperity depends on its having an efficient and well-maintained rail system," Buffett said in a press release. "Conversely, America must grow and prosper for railroads to do well."
Shares of Burlington Northern jumped $10.46, or 21.5%, to $57.80 on the news.
The deal will be 40% stock, 60% cash. Berkshire Hathaway's board of directors approved a 50-for-1 split of its Berkshire Hathaway (BRK.
Class B common stock in order to "accommodate holders of smaller amounts of BNSF shares who opt for a share exchange rather than a cash payment."The deal is "an all-in wager on the economic future of the United States. I love these bets," Buffett said.
"America is about business," Buffett told CNBC. "Business will always be important to the American public."
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