BNSF shareholders back Berkshire buyout; deal nears finish line (2/12/2010)
2/12/2021At about lunchtime today, BNSF Railway Co. will become a privately held company. Yesterday, Burlington Northern Santa Fe Corp. shareholders voted in favor of the proposed $26 billion-plus acquisition by Warren Buffett/Berkshire Hathaway Inc. during a stockholder meeting in Fort Worth, Texas.
Preliminary voting results released by the Class I show that about 70 percent of stockholders who own non-Berkshire-owned BNSF shares approved the transaction, exceeding the required two-thirds majority. In addition, holders of at least a majority of issued and outstanding BNSF shares voted in favor of the buyout, which calls for Berkshire to purchase the remaining 77.4 percent of BNSF shares it doesn't own for $100 per share.
Berkshire and BNSF expect to close the transaction at around 12 noon today after the Class I files an 8K form for a stock offering with the Securities and Exchange Commission, said BNSF Chairman, President and Chief Executive Officer Matt Rose during a press conference held yesterday.
“We are at an important milestone in our 160-year history,” he said in a prepared statement. “This is a vote of confidence in BNSF and the future of freight rail, and it demonstrates how well our business model is aligned with our new parent company.”
Both companies favor a long-term ownership model, said Rose, adding that BNSF’s management strategy won’t change because of the acquisition.
“Warren’s been very clear that we should run the railroad like a family business that’s been around 100 years,” he said.
The acquisition begins Berkshire’s “first century of ownership of BNSF,” said Buffett, Berkshire’s chairman and CEO, in a prepared statement.
“I’m looking forward to every day of it as our railroad does its part to ensure the future prosperity of the country,” he said.
— Jeff Stagl
Source: Progressive Railroading Daily News