Berkshire Hathaway to buy BNSF

Berkshire Hathaway to buy BNSF    Warren Buffett’s Berkshire Hathaway will buy Burlington Northern Santa Fe Corp. for $100 per share in a deal valued at $44 billion including $10 billion in outstanding BNSF debt.
   Buffett, the well-known investor who is chairman and chief executive of Berkshire Hathaway, called the deal “an all-in wager on the economic future of the United States. I love these bets.'
   The two companies announced a definitive agreement in what will be the largest acquisition in Berkshire Hathaway history. The firm already owned 22.6 percent of the railroad.
   The transaction requires approval by holders of two-thirds of Burlington Northern Santa Fe's outstanding shares, other than shares held by Berkshire Hathaway. BNSF’s stock had closed at $76.07 on Monday and has traded between $50.86 and $91.98 during the past year.

Buffett

   The deal is subject to customary closing conditions, including U.S. Justice Department review. Closing is expected to occur during the first quarter of 2010. BNSF will keep its headquarters in Ft. Worth.
   'Our country's future prosperity depends on its having an efficient and well-maintained rail system,' Buffett said. “Conversely, America must grow and prosper for railroads to do well. Berkshire's $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry.'

Rose

   Matthew K. Rose, BNSF chairman, president and CEO, said Buffet’s “leadership philosophy supporting long-term investment that will allow BNSF to focus on future needs of our railroad, our customers and the U.S. transportation infrastructure.”
   Under the deal, each share of BNI common stock can be converted into either a cash payment of $100 or a variable number of shares of Berkshire Hathaway Class A or Class B common stock, subject to proration if the election do not equal about 60 percent in cash and 40 percent in stock.