Berkshire Hathaway Buying Burlington Northern
Omaha based Berkshire Hathaway, owned by famed investor Warren Buffet, annouced today that it would purchase the Burlington Northen Railroad.
The deal, valued at $34 Billion, would be Buffet's largest purchase ever.
Berkshire Hathaway ownership of the railroad would put the control of the countries two largest railroads in Omaha. The Union Pacific Railroad laid down it's first rail there in 1865.
Buffet, with a habit of buying cheap when others cannot, has plenty of cash on hand. $8 Billion of the purchase price will be financed by low interest loans.
Berkshire Hathaway, a $150 Billion conglomerate, has ownership in a wide range of companies, ranging from furniture to insurance.
The purchase will be widely seen as Buffet's bet on an economic recovery.
Warren Buffet's Berkshire Hathaway said it has agreed to buy Burlington Northern Santa Fe in a deal valuing the railroad at $34 billion.Berkshire Hathaway Inc. already owns a stake of about 22 percent in Burlington Northern, and says it will pay $100 a share for the rest of the company.The deal announced Tuesday has been approved by the boards of both companies.It would be the biggest acquisition ever for Berkshire Hathaway Inc.
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