Wow BNSF bought out $34B

Lots_Trains · Nov 3, 2009

Wow $34 Billion, wonder if it means a new logo colour scheme

Berkshire to buy Burlington Northern Santa Fe for $34B 7:33 AM CT

07:33 AM CST on Tuesday, November 3, 2009
By BRENDAN M. CASE / The Dallas Morning News
bcase@dallasnews

Warren Buffett, the second-richest American, agreed to acquire Fort
Worth-based Burlington Northern Santa Fe Corp. for $34 billion, in what
would be his largest acquisition ever.

Buffett's holding company, Berkshire Hathaway Inc., agreed to pay $100 a
share for the 77.4 percent of BNSF it doesn't already own. The cash and
stock offer represents a 31 percent premium over BNSF's closing price
Monday.

Berkshire Hathaway would also assume $10 billion in debt from BNSF, the
nation's No. 2 railroad.

Buffett described the transaction as a huge bet on the railroad business and
on BNSF chairman, president and chief executive Matthew Rose and his team.

"Most important of all, however, it's an all-in wager on the economic future
of the United States," said Mr. Buffett. "I love these bets."

The boards of both companies have approved the transaction. The deal also
requires approval by holders of two-thirds of BNSF's outstanding shares,
other than the shares held by Berkshire Hathaway.

It's also subject to other closing conditions, including review by the U.S.
Department of Justice. The deal is expected to close in the first three
months of 2010, according to a statement by Berkshire Hathaway and BNSF.

"We are thrilled to have the opportunity to become a part of the Berkshire
Hathaway family," Rose said. "We admire Warren'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."

Cheers

Lots

aardvark1 · Nov 3, 2009

Ummmmmm......

Perhaps a decimal slip there....

It was $44 Billion USD. The $10 Billion was additional for the assumed debt.

NEW YORK (MarketWatch) -- Berkshire Hathaway Inc.'s $44 billion deal to buy Burlington Northern Santa Fe Corp. is basically a huge bet on coal, a fuel that powers Warren Buffett's power plants at his MidAmerican Energy utility and plays a major role in the railroad business.

Oh well, $10 Billion here, $10 Billion there.... does it really matter?

No need for logo change..... Buffett Northern Sante Fe is still......BNSF.

Have fun,

applegathc · Nov 3, 2009

WHAT!?!?

JCitron · Nov 3, 2009

This in effect makes the BNSF a private company since BH will own all of the stock. With privatly owned companies, they don't have to deal with scrutiny by stockholders and the SEC regarding profits and other accounting matters.

John

evan123 · Nov 3, 2009

As long as they continue to work on creating more jobs, all the power to them.

gfisher · Nov 4, 2009

they don't have to deal with scrutiny by stockholders and the SEC regarding profits and other accounting matters.

Perhaps not directly, but Berkshire Hathaway is a public company and subject to the SEC and Buffet is known for his staightforward and conservative accounting standards. And Buffet shareholder meetings are legendary.

applegathc · Nov 4, 2009

gfisher said:
Perhaps not directly, but Berkshire Hathaway is a public company and subject to the SEC and Buffet is known for his staightforward and conservative accounting standards. And Buffet shareholder meetings are legendary.

Does this mean BNSF is in good hands now?

cam

gary6204 · Nov 4, 2009

i never thought this would happen

SantaFebuff · Nov 4, 2009

Perhaps we'll see some turn around... hopefully in the right direction. I hope BNSF didn't screw themselves. I do love BNSF partly, after all, one of Illinois's finest merged to make it. (CB&Q.)

Berkshire... That's a promising name. :hehe:

Cheers,
Joshua

gfisher · Nov 4, 2009

Does this mean BNSF is in good hands now?

Personally, and this is just one man's opinion, but I believe that is the case.

It also prohibits anyone else like CN, UP or NS making a bid for it in a takeover attempt.

backyard · Nov 4, 2009

...who knows...?

Someone may think up a real name...:hehe:

schweitzerdude · Nov 4, 2009

Warren's takeover

Having Berkshire Hathaway as the owner is a positive event in my opinion. And having one stockholder does make life simpler in some respects.

Since I live across the road from BNSF mainline (northern Idaho) I'll watch for any new logos as a result of Warren's buyout and let you know

UP5521 · Nov 4, 2009

Whoa, now that is alot of money!

Great_Lakes · Nov 4, 2009

After listening to a phone interview with Warren Buffet, I am convinced he knows what a railroad can be capable of and its not all just dollars and cents; a practice more associated to CN Rail in my opinion. Buffet is banking on the fact that from 10 years or now, more people will be living in the US and they will need goods and he believes that the railroad should play more of a part in delivering those goods. By the sounds of it, he is sounding like he would like to see more intermodal and transloading/distribution operations than.

He does seem to have a passion for trains too having admitted he has a sizable Lionel layout on his 3rd floor.

Rusty1955 · Nov 4, 2009

Now if UP would get going again....My brother in law has been on"furlough" for almost a year now. He's been with them over 5 years. The reason for them being on furlough is that the guys that UP thought would retire, didn't. Now they have WAY too many people.

StorkNest · Nov 4, 2009

applegathc said:
Does this mean BNSF is in good hands now?

cam

Depends. I do think it is interesting, when was the last time a Class I was privately owned?

backyard said:
Someone may think up a real name...:hehe:

Of course they will!
Buffet National Superior Freight.
Now you know the real rason for those letters!
New slogan: We'll eat you up alive!
New goal: Prove everyone wrong, Umungous Potbelly is not destined to take over everything!

evan123 · Nov 4, 2009

Rusty1955 said:
Now if UP would get going again....My brother in law has been on"furlough" for almost a year now. He's been with them over 5 years. The reason for them being on furlough is that the guys that UP thought would retire, didn't. Now they have WAY too many people.

I got an uncle who was laid off with UP on the train crews, he's had 14 years seniority. So good luck to your brother!

I'm over in the 100 district of BNSF and we've had over 200 personnel laid off, which isn't "too" bad if you consider the numbers. Both railroads should be starting to re-hire for all positions come late 2nd quarter of 2010.

DaveW · Nov 4, 2009

$44, billion usd !!. Just shows what good value Trainz is

DaveW

WileeCoyote · Nov 4, 2009

:hehe::hehe::hehe:

WileeCoyote:hehe:

Alex99al · Nov 4, 2009

Buffet should keep his stinkin' hands off our BNSF. He should buy Norfolk Southern or CSX Transportaion.

Wow BNSF bought out $34B

TS2010 User

Senior Citizen Member

NoT tHe StAtUeS!

Trainzing since 12-2003

New member

Old Hand

NoT tHe StAtUeS!

Union Pacific Fan

That's So Trainz Forum

Old Hand

ROAD FOREMAN of ENGINES

Member

Tidewater Western owner

Member

New member

Stop that, its just silly

New member

New member

Eatibus Almost Anythingus

CLOSED

Similar threads