Warren Buffett’s Berkshire Hathaway (BRK.A) said Tuesday that it will acquire the remaining shares of railroad operator Burlington Northern Santa Fe (BNI) that it doesn’t already own for $100 per share in cash and stock in a deal valued at approximately $44 billion.
“Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Berkshire CEO Warren E. Buffett. “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 Buffett. “I love these bets.”
Closing of the transaction is expected to occur during the first quarter of 2010. And that’s where I want to use it for a trade idea.