Makes 34 billion U.S. dollars bet on the future of the U.S. economy, Warren Buffett is Berkshire Hathaway Inc. on Tuesday, would buy Burlington Northern Santa Fe Corp.

“Berkshire is 34 billion U.S. dollars investment in BNSF is a huge bet that the company’s CEO Matt Rose and his team, and the railroad industry,” Buffett said in a statement.

“Most importantly, however, is an all-in contribution to the economic future of the United States. I love those bets,” he said.

Berkshire Hathaway owns about 22 percent in Burlington Northern, and said it will pay $ 100 in cash and stock accounts in the company, 31.5 percent of premium is Burlington Northern’s Monday closing price. Shareholders have the opportunity to convert the stock to pay $ 100 in cash per share or receive Berkshire Class A or Class B common stock. Up to 60 percent is a lot of money and 40 percent in stock.

Most of the stock is a lot of Berkshire’s “” shares, but Berkshire’s board also approved a 50-for-1 share of its Class B common shares to owners of smaller amounts of shares of Burlington, who choose to share swap rather than cash. Berkshire’s Class B shares closed on Monday, $ 3,265. With the share, each share is worth $ 65.30. Burlington shares closed on Monday, $ 76.07. Burlington shares shot up $ 21.56, or 28.4 percent, is $ 97.63 and in the morning trade. Shares of other major rail also rose.

Much has been approved by the Boards of both companies. It would be the largest acquisition ever Berkshire Hathaway Inc.

Berkshire also owns MidAmerican Energy Holdings, which controls power companies in the Midwest and Pacific Northwest. Rail could be a strategic acquisition as it tracks and drive through the areas, a large supply of coal in power plants scheduled.

Chairman of MidAmerican Energy has come out aloud against climate change legislation in the coal-fired power plants.

Burlington Northern Santa Fe is the second-largest railroad, with a market value – market value of the share capital – about 25.9 billion U.S. dollars.

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Burlington Northern was first posted on November 3, 2009 at 9:25 pm.

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