Warren Buffett buys Burlington Northern

Warren Buffett’s Berkshire Hathaway Inc. said it is planning to buy railroad Burlington Northern Santa Fe Corp. The purchase, the largest ever for Berkshire, will cost the company US$26bn, or US$100 a share in cash and stock, for the 77.4% of the railroad it doesn’t already own. The deal is valued at US$44bn. Fitch Ratings said that it may downgrade its ratings on Berkshire Hathaway and its insurance subsidiaries on the proposed deal to acquire the shares of Burlington Northern Santa Fe Corp. Berkshire does not already own. Fitch said that it is concerned how the transaction will affect Berkshire's asset profile and capitalization.