Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Wednesday, December 6, 2023
Courthouse News Service
Wednesday, December 6, 2023 | Back issues
Courthouse News Service Courthouse News Service

Judge OK’s Settlement|Over $26B Railroad Deal

(CN) - A Delaware judge approved a settlement putting to rest shareholders' concerns about the fairness of Berkshire Hathaway's $26 billion purchase of Burlington Northern Santa Fe Corp.

Delaware Chancery Court Judge J. Travis Laster approved the settlement at a hearing Thursday in Wilmington, according to Bloomberg.

"It's a settlement that's reasonably easy to approve," the judge said.

Berkshire Hathaway, the Nebraska-based conglomerate holding company of legendary investor Warren Buffett, completed its purchase of the Fort Worth, Texas-based Burlington Northern in February.

Last November, it offered to buy the remaining 77.4 percent of the company it did not already own for $100 a share. At the time, Burlington Northern shares were publicly trading at about $76 a share.

It is the single largest acquisition Berkshire has ever made.

Laster also awarded $450,000 in legal fees and expenses, much lower than the $3.5 million requested. He said the application citing 2,400 hours of legal work in Delaware and Texas posed "a serious credibility stretch."

Follow @davejourno
Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.