Buffett's Berkshire buys Burlington Northern Santa Fe and declares B-share split (BRK.A,BNI)

11/3/2009-Berkshire Hathaway (NYSE:BRK.A) announced Tuesday morning that it has entered into a definitive agreement to acquire the remaining 74.4% of Burlington Northern Santa Fe (NYSE:BNI) for $100 per share in a cash and stock deal.

The transaction is valued at approximately $44 billion, which includes $10 billion of outstanding BNSF debt, which makes the acquisition Berkshire's largest ever.

"Our country's future prosperity depends on its having an efficient and well-maintained rail system," said Warren E. Buffett, Berkshire Hathaway Chairman and Chief Executive Officer.

"Conversely, America must grow and prosper for railroads to do well. Berkshire's $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry.

"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."

In addition, Berkshire Hathaway's board of directors announced Tuesday morning that it has approved a 50-for-1 split of its Class B Common stock. The split is still subject to the approval of Berkshire's shareholders.

Write to Chip Brian at cbrian@tradethetrend.com

---------------------------------------------------------------------------------------------

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup.html

Related terms: acquisition, ceo, debt, investment, market, nyse, railroads, securities