Savvy investor Warren Buffett placed his biggest bet in history on Burlington Northern Santa Fe Corp, the 2nd largest US Railroad company on Tuesday. Mr. Buffett’s Berkshire Hathaway Inc. will pay US$100/shr in cash for the 78% of BNSF that it does not already own for a total of US$34B. The price is 31.5% premium on BNSF’s closing price Monday. Including BNSF’s US$10B debt that Berkshire has agreed to take, the value of the deal will top US$44B, the biggest acquisition ever for Berkshire. “It’s an all-in wager on the economic future of the United States. I love these bets,” Buffett said. The deal has already been approved by boards of both companies, and will be completed in Q-1 Y 2010. Read more
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