Berkshire Hathaway, the investment vehicle of Warren E. Buffett, said on Tuesday that it planned to buy the 77.4 percent of Burlington Northern Santa Fe it did not already own for $26 billion in cash and stock, in the largest deal in Berkshire history. The deal, which including Berkshire's previous investment and the assumption of $10 billion in Burlington Northern debt brings the total value to $44 billion, represents what Mr. Buffett said was a big bet on the United States. He told CNBC in an interview that railroad operators cannot do well unless American businesses were producing goods and customers were buying them. "It's an all-in wager on the economic future of the United States," he said in a written statement. "I love these bets."
The deal, which including Berkshire's previous investment and the assumption of $10 billion in Burlington Northern debt brings the total value to $44 billion, represents what Mr. Buffett said was a big bet on the United States. He told CNBC in an interview that railroad operators cannot do well unless American businesses were producing goods and customers were buying them.
"It's an all-in wager on the economic future of the United States," he said in a written statement. "I love these bets."
To me this means Buffett is betting that America will still burning western state coal, rather than American manufacturing.
Buffett said that the deal came together quickly. He made a proposal to Matthew K. Rose, Burlington Northern's chairman and chief executive. Mr. Rose took the proposal to his board -- and got an answer in about 15 minutes... Shares in Burlington Northern, which closed Monday at $76.07, jumped nearly 30 percent in premarket trading on Tuesday to $98.15. Class A shares in Berkshire were up slightly in premarket trading at $98,971.57... Burlington Northern was advised by Goldman Sachs, Evercore Partners and the law firm Cravath Swaine & Moore. Berkshire was advised by the law firm Munger, Tolles & Olson.
Shares in Burlington Northern, which closed Monday at $76.07, jumped nearly 30 percent in premarket trading on Tuesday to $98.15. Class A shares in Berkshire were up slightly in premarket trading at $98,971.57...
Burlington Northern was advised by Goldman Sachs, Evercore Partners and the law firm Cravath Swaine & Moore. Berkshire was advised by the law firm Munger, Tolles & Olson.
Funny how Buffett's Goldman Sachs advised BNSF to agree.
I don't know why we allow these Goldman trolls to post on the site. What's "Good for Goldman is Good for the United States."
......
Aside -- All the best on job search. "Life shrinks or expands in proportion to one's courage." - Anaïs Nin
For fairness, coal is not even the majority of BNSF's income:
On the other hand, much of the industrial products transported aren't Made in America, but imports unloaded at Pacific ports transported inland...
Hm? According to Wikipedia, he has only a 10% share. *Lunatic*, n. One whose delusions are out of fashion.
