November 14, 2009 - At least three shareholders of Burlington Northern Santa Fe Corp. have sued the railroad company since the deal with Berkshire Hathaway was announced, reports the Forth Worth Star-Telegram.The Star-Telegram reports that the suits, which were filed in Tarrant County, Tex., district court, allege that BNSF management shortchanged shareholders by agreeing to a price that was too low.
The deal with BNSF vaues Burlington at $34 billion, not including the company's $10 billion in debt. BNSF shareholders will receive $100 a share under the deal. The stock had been trading around $75 a share before the deal was announced.
The Wall Street Journal reported soon after the deal was inked that the BNSF board did indeed press Warren Buffett for more money, but the Berkshire chief said $100 a share was as high as he could go. FULL STORY
