socialmedian: Warren Buffett gambles on trains by buying BNSF for $34bn

Add News Flash

User-submitted headlines for this story

Clips

Warren Buffett gambles on trains by buying BNSF for $34bn

Source: The Guardian

Nov 03, 2009

Summary

• Buffett in $44bn deal for Burlington Northern Santa Fe
• World's second richest man sees bright future for rail

The world's second richest man, Warren Buffett, is buying himself an enormous train set by acquiring one of America's largest freight railway operators, Burlington Northern Santa Fe, in a deal worth $44bn (£27bn) that signals confidence in a long-term revival of the US economy.

Buffett's Berkshire Hathaway investment empire, which has been dabbling in railway stock for several years, already owns 22% of the Texas-based goods rail network. It is paying $26bn in cash and stock to buy the rest, valuing the entire business at $34bn, and will take on $10bn of debt.

The purchase is the biggest in the history of Berkshire Hathaway, a Nebraska-based conglomerate built on insurance that has expanded to own businesses such as Fruit of the Loom and MidAmerican Energy, the parent company of Britain's Northern Electric and Yorkshire Electricity.

Buffett made a $100-a-share offer to BNSF during a recent visit to the railway company's home city of Fort Worth and he s

...Read the full article

Comments (0)

Add Your Comment