Jul. 22 at 6:56 PM
Untrue Rumour:
$BRK.B BNSF is working w/
$GS to explore a rival railroad takeover amid
$UNP pursuit of
$NSC
Buffet told CNBC: "No one from Goldman has spoken to me or (Berkshire exec & incoming CEO as of 2026) Greg Abel about a rail deal"
Further, Buffett views most investment bankers as expensive & useless and would simply do the homework & offer himself
Note: Buffett cut the price of the Alleghany offer by nearly
$2 to
$848.02 from his original offer of $ 850 b/c Alleghany insisted on hiring an investment banker - as such, Buffett deducted that est'd fee
Note: Berkshire bought BNSF in 2010 for
$26.5B for the remaining shares it didn’t already own
Deal Structure:
$15.9B cash &
$10.6B stock - did not use an investment banker on the deal
Current cash (mrq):
$334B
Book Value: (mrq):
$303.37
Context: Currently, 2 major railroads operating west of the Mississippi River: UP & BNSF and 2 in the East: NSC &
$CSX
2024 Class I revs:
- UNP:
$24.25B
- BNSF:
$23.35B
- CSX:
$14.54B
- NSC:
$12.17B
