Buffett's Berkshire gets green light to buy railroad

WASHINGTON: Warren Buffett's Berkshire Hathaway said on Thursday that Burlington Northern Santa Fe shareholders have cleared the track for its takeover of one of the largest rail operators in North America.

Preliminary results showed that approximately 70 percent of BNSF shares were voted in favor of the transaction, above the 66-2/3 per cent required, the rail group said.

"Tomorrow begins the first century of ownership of BNSF by Berkshire Hathaway. I'm looking forward to every day of it as our railroad does its part to ensure the future prosperity of the country," said Buffett, Berkshire Hathaway chairman and chief executive and one of the world's richest people.

Buffett had announced "an all-in wager on the economic future of the United States" when Berkshire Hathaway said three months ago it would purchase the 77.4 per cent of BNSF that it did not currently own for $100 per share in cash and stock.

The offer valued the rail operator at $44 billion, including $10 billion in debt.

The November 3 takeover bid represented a 31 per cent premium over BNSF's closing share price.

Buffett, known in financial circles as the "Oracle of Omaha" for his investing acumen, is investing about $26.3 billion for the new stake.

BNSF Railway Company operates 32,000 route miles (51,499 kilometers)in 28 states and two Canadian provinces.

The merger is expected to close on Friday.