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Berkshire plans to sell stock in 2 railroads
Published:November 10, 2009, 7:01 AM
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Updated: August 21, 2010, 3:01 AM
OMAHA, Neb. (AP)—Warren Buffett’s company will sell its stakes in Union Pacific and Norfolk Southern railroads before it completes its $26.3 billion acquisition of the railroad Burlington Northern Santa Fe Corp.
Berkshire Hathaway’s plan to sell those stocks was revealed in documents filed Monday with the Securities and Exchange Commission.
According to a transcript of a conference call, Matt Rose, Burlington Northern’s chief executive officer, told employees of his Fort Worth, Texas-based railroad that Berkshire plans to sell its 9.6 million shares of Union Pacific Corp. and 1.9 million shares of Norfolk Southern Corp.
Berkshire owns 22.6 percent of Burlington Northern stock, and last Tuesday, it announced a plan to acquire the rest for $100 per share. Berkshire owns The Buffalo News, and Buffett is the newspaper’s chairman.
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