FTC approves Berkshire stake increase in BNSF

FTC approves Berkshire stake increase in BNSF The U.S. Federal Trade Commission said Wednesday it has cleared Warren Buffet's Berkshire Hathaway to move forward with a plan to increase the investment group's stake in Burlington Northern Santa Fe Corp., the country's second-largest Class I railroads.
   Berkshire Hathaway said earlier this month that it plans to increase its 15 percent share in the railroad to 25 percent, according to a regulatory filing by the Fort Worth, Texas-based railroad.
   According to the filing, Berkshire wants to invest at least $600 million in BNSF, which would give the investment group a 17.1 percent stake.
   Federal antitrust law requires entities planning to acquire more than 25 percent of a firm's stock to notify the FTC and wait 30 days before closing the transaction.
   Wednesday's decision by regulators would effectively allow Berkshire to amass as much as a 50 percent stake in the rail firm.
   In April it was revealed that Berkshire Hathaway had acquired a 5 percent stake in BNSF and in May Buffet revealed his firm also owned a 3 percent, or nearly $760 million, stake in another Class I railroad, Omaha, Neb.-based Union Pacific. Berkshire also holds about 4 million shares of Norfolk, Va.-based Class I railroad Norfolk Southern, representing a 1 percent share of the railroad.
   In August, Berkshire Hathaway bought a further 10.1 million shares in BNSF, increasing its stake to nearly 15 percent.