Shareholders Approve Burlington Northern Santa Fe Transaction with Berkshire Hathaway
12 February 2010 - 2:35AM
Business Wire
Burlington Northern Santa Fe Corporation (BNSF; NYSE:BNI)
shareholders today voted overwhelmingly in favor of the company’s
acquisition by Berkshire Hathaway Inc. (Berkshire; NYSE: BRK.A,
BRK.B), securing a path for BNSF Railway to continue to build upon
its position as one of America’s premier freight transportation
companies.
In all, preliminary results show that approximately 70 percent
of BNSF issued and outstanding shares not owned by Berkshire or its
affiliates were voted in favor of the transaction, above the 66-2/3
percent required. Additionally, holders of at least a majority of
the issued and outstanding shares of BNSF voted in favor. Both of
these votes were required under Delaware law to adopt the merger
agreement and were reported at a shareholder meeting held today at
BNSF headquarters in Fort Worth. Representatives of Innisfree
M&A Incorporated tabulated the votes and acted as independent
inspectors.
“Tomorrow begins the first century of ownership of BNSF by
Berkshire Hathaway. I’m looking forward to every day of it as our
railroad does its part to ensure the future prosperity of the
country,” said Warren E. Buffett, Berkshire Hathaway chairman and
chief executive officer.
“We are at an important milestone in our 160-year history,” said
Matthew K. Rose, chairman, president and chief executive officer of
BNSF. “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. By providing cost-effective
and energy-efficient transportation that also benefits the
environment, we are moving the goods that are crucial to consumers
and our economy as our nation powers its way out of the
recession.”
The merger is expected to close on February 12.
Over the long term, the nation’s demand for transportation is
destined to grow. As the most environmentally friendly form of
surface transportation, rail is more fuel-efficient for moving
freight than using the nation’s crowded highways. If just 10
percent of the freight that currently moves by truck were diverted
to rail, fuel savings would exceed 1 billion gallons per year and
annual greenhouse gas emissions would fall by more than 12 million
tons. And as the nation’s demand for transportation continues to
increase, rail is an obvious solution to meet this challenge.
As a leader in environmental stewardship, BNSF can move a ton of
freight an average of 470 miles on a single gallon of diesel fuel.
As the rail industry’s intermodal leader, each BNSF intermodal
train can take 280 or more long-haul trucks off the nation’s
crowded highways.
About BNSF
BNSF through its principal operating subsidiary, BNSF Railway
Company, operates one of the largest North American rail networks,
with about 32,000 route miles in 28 states and two Canadian
provinces. BNSF is among the world's top transporters of intermodal
traffic, moves more grain than any other American railroad, carries
the components of many of the products we depend on daily, and
hauls enough low-sulfur coal to generate about ten percent of the
electricity produced in the United States. BNSF is an industry
leader in Web-enabling a variety of customer transactions at
www.bnsf.com.
About Berkshire
Berkshire and its subsidiaries engage in diverse business
activities including property and casualty insurance and
reinsurance, utilities and energy, finance, manufacturing,
retailing and services.
Forward-Looking Statements
Statements contained herein concerning projections or
expectations of financial or operational performance or economic
outlook, or concerning other future events or results, or which
refer to matters which are not historical facts, are
"forward-looking statements" within the meaning of the federal
securities laws. Similarly, statements that describe BNSF's or
Berkshire's objectives, expectations, plans or goals are
forward-looking statements. Forward-looking statements include,
without limitation, BNSF's or Berkshire's expectations concerning
the marketing outlook for their businesses, productivity, plans and
goals for future operational improvements and capital investments,
operational performance, future market conditions or economic
performance and developments in the capital and credit markets and
expected future financial performance. Forward-looking statements
also include statements regarding the expected benefits of the
proposed acquisition of BNSF by Berkshire. Forward-looking
statements involve a number of risks and uncertainties, and actual
results or events may differ materially from those projected or
implied in those statements.
Important factors that could cause such differences include, but
are not limited to: adverse changes in economic or industry
conditions, both in the United States and globally; continuing
volatility in the capital or credit markets and other changes in
the securities and capital markets; changes affecting customers or
suppliers; competition and consolidation in the industries in which
BNSF and Berkshire compete; labor costs and labor difficulties;
developments and changes in laws and regulations; developments in
and losses resulting from claims and litigation; natural events
such as severe weather, fires, floods and earthquakes or acts of
terrorism; changes in operating conditions and costs; and the
extent of BNSF's or Berkshire's ability to achieve their
operational and financial goals and initiatives. In addition, the
acquisition of BNSF by Berkshire is subject to the satisfaction of
the conditions to the completion of the acquisition and the absence
of events that could give rise to the termination of the merger
agreement for the acquisition, and the possibility that the
acquisition does not close, and risks that the proposed acquisition
disrupts current plans and operations and business relationships,
or poses difficulties in employee retention.
We caution against placing undue reliance on forward-looking
statements, which reflect our current beliefs and are based on
information currently available to us as of the date a
forward-looking statement is made. We undertake no obligation to
revise forward-looking statements to reflect future events, changes
in circumstances, or changes in beliefs. In the event that we do
update any forward-looking statements, no inference should be made
that we will make additional updates with respect to that
statement, related matters, or any other forward-looking
statements. Any corrections or revisions and other important
assumptions and factors that could cause actual results to differ
materially from our forward-looking statements, including
discussions of significant risk factors, may appear in BNSF's or
Berkshire's public filings with the Securities and Exchange
Commission (the "SEC"), which are accessible at www.sec.gov, and
which you are advised to consult.
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