Warren Buffett believes in the United States' economic future, and yesterday (Tuesday) he put his money where his mouth is.
Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) acquired railroad Burlington Northern Santa Fe Corp. (NYSE: BNI) in a deal valued at $44 billion, the largest in Berkshire's history.
Berkshire, which already owns 22.6% of the company, will pay $100 per share in cash and stock for the remainder of Burlington's business. The offer values Burlington stock at a 31.5% premium to its Monday close. The deal, expected to close in the first quarter of next year, includes $10 billion in Burlington debt.
If this deal goes through, it might be the first totally private ownership of a major American Railroad in the history of this country
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[…] has done just that. It recognized the immense opportunity and deployed its huge war chest in the greatest acquisition Warren Buffet has ever made – the roughly 76% of Burlington Northern Santa Fe Corp. (NYSE: BNI) that it did not already […]
[…] Money Morning: Buffett Bets on Bright U.S. Economic Future With Burlington Acquisition […]