Burlington Northern

On Tuesday, Warren Buffett Berkshire said that he want to buy Burlington Northern for $44 billion. Burlington Northern has debt of $10 billion and in the deal the debt will also be acquired by Buffett. He already had a major share in Burlington Northern and wants to buy remaining 77.4% of the company in cash and stocks offer worth $100 per share.
He called his firm’s investment an “all-in wager on the economic future of the United States.” and said in a statement

“Our country’s future prosperity depends on its having an efficient and well-maintained rail system. Conversely, America must grow and prosper for railroads to do well. Most important of all, however, it’s an all-in wager on the economic future of the United States. I love these bets.”

On Tuesday, during a conference call with investors, Matthew Rose, Burlington Northern’s chairman and CEO, declared the sale of the Fort Worth, Texas-based firm as “strategic fit” for both the company’s customers and employees. Burlington Northern is expected to close early next year but no management change is expected.
Buffett requires approval of shareholders and regulatory review by the Justice Department before the purchase. Berkshire said in a statement that more Class B shares would be needed to

“accommodate holders of smaller amounts of Burlington Northern Santa Fe shares who opt for a share exchange rather than a cash payment.”