Berkshire exercises options to buy 7.8 million shares of BNSF
Posted: Saturday, October 06, 2007
OMAHA, Neb. (AP) -- Warren Buffett's Berkshire Hathaway has bought 7.8 million more shares of Burlington Northern Santa Fe stock, giving it control of 17.2 percent of the nation's second-largest railroad.
Berkshire had already owned about 15 percent of Burlington Northern before this latest purchase, which was revealed in a Friday filing with the Securities and Exchange Commission.
Berkshire made its latest railroad stock purchase on Wednesday by exercising the options it already held to buy 7.8 million shares of Burlington Northern stock. Berkshire now owns 60.8 million shares of BNSF.
Berkshire spokeswoman Jackie Wilson said Friday afternoon that no one was available to comment on the railroad stock purchase. Berkshire officials do not typically comment on the company's stock holdings.
But earlier this year, Buffett discussed his interest in the railroad industry. Berkshire's chairman and chief executive said railroads have become an appealing investment because they are healthier today than in past years, something he said he was slow to realize because of past poor performance in the industry.
Berkshire also disclosed Friday that all of its BNSF stock had been transferred to National Indemnity Co., which is one of Berkshire's insurance subsidiaries. Previously, the BNSF stock was split between three different Berkshire subsidiaries.
Because the purchases are by subsidiaries, it's not clear whether Buffett himself made the decision to buy.
Berkshire's interest in railroads extend beyond Burlington Northern. The Omaha-based company revealed in May that it owned 10.5 million shares of Union Pacific Corp. and nearly 6.4 million shares of Norfolk Southern Corp.
But it's not clear how much Union Pacific and Norfolk Southern stock Buffett's company currently owns because Berkshire obtained permission to omit those investments from its most-recent quarterly stock filing to protect its trading strategy.
Berkshire's Class A shares gained $2,100, or 1.8 percent, Friday to close at $121,100 before the latest railroad purchase was disclosed.
Burlington Northern shares gained $4.79, or 5.8 percent, to close at $86.78 Friday. It gained another 43 cents to sell for $87.21 in after-hours trading Friday evening.
Berkshire owns furniture, insurance, jewelry and candy companies, restaurants, natural gas and corporate jet firms and has major investments in such companies as The Coca-Cola Co. and Wells Fargo & Co.
Berkshire had already owned about 15 percent of Burlington Northern before this latest purchase, which was revealed in a Friday filing with the Securities and Exchange Commission.
Berkshire made its latest railroad stock purchase on Wednesday by exercising the options it already held to buy 7.8 million shares of Burlington Northern stock. Berkshire now owns 60.8 million shares of BNSF.
Berkshire spokeswoman Jackie Wilson said Friday afternoon that no one was available to comment on the railroad stock purchase. Berkshire officials do not typically comment on the company's stock holdings.
But earlier this year, Buffett discussed his interest in the railroad industry. Berkshire's chairman and chief executive said railroads have become an appealing investment because they are healthier today than in past years, something he said he was slow to realize because of past poor performance in the industry.
Berkshire also disclosed Friday that all of its BNSF stock had been transferred to National Indemnity Co., which is one of Berkshire's insurance subsidiaries. Previously, the BNSF stock was split between three different Berkshire subsidiaries.
Because the purchases are by subsidiaries, it's not clear whether Buffett himself made the decision to buy.
Berkshire's interest in railroads extend beyond Burlington Northern. The Omaha-based company revealed in May that it owned 10.5 million shares of Union Pacific Corp. and nearly 6.4 million shares of Norfolk Southern Corp.
But it's not clear how much Union Pacific and Norfolk Southern stock Buffett's company currently owns because Berkshire obtained permission to omit those investments from its most-recent quarterly stock filing to protect its trading strategy.
Berkshire's Class A shares gained $2,100, or 1.8 percent, Friday to close at $121,100 before the latest railroad purchase was disclosed.
Burlington Northern shares gained $4.79, or 5.8 percent, to close at $86.78 Friday. It gained another 43 cents to sell for $87.21 in after-hours trading Friday evening.
Berkshire owns furniture, insurance, jewelry and candy companies, restaurants, natural gas and corporate jet firms and has major investments in such companies as The Coca-Cola Co. and Wells Fargo & Co.
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