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Article: United states : Buffett s firm to buy Burlington railroad.
- Article from:
- TendersInfo
- Article date:
- November 4, 2009
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Byline: rakshali03
Berkshire Hathaway Inc. said Tuesday that it agreed to buy railroad operator Burlington Northern Santa Fe Corp. in a $44 billion deal that Chairman Warren Buffett called "an all-in wager" on the U.S. economy.
Berkshire agreed to buy Burlington for $34 billion, or $100 a share. It already owns more than one-fifth of the railroad operator, so the cost is roughly $26 billion, which will be paid for with about 60 percent in cash and 40 percent in Berkshire shares.
Berkshire also is taking on about $10 billion of Burlington debt, bringing the size of the deal to $44 billion. That values Burlington at a 30 percent premium to its ...