{"id":272421,"date":"2010-02-03T08:55:00","date_gmt":"2010-02-03T13:55:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:390547"},"modified":"2010-02-03T08:55:00","modified_gmt":"2010-02-03T13:55:00","slug":"be-long-rails-ahead-of-berkshires-burlington-buyout","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/272421","title":{"rendered":"Be long rails ahead of Berkshire&#8217;s Burlington buyout"},"content":{"rendered":"<p><a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=BNI&amp;id=256628\" >Burlington Northern Santa Fe Corp.<\/a> is holding a special meeting on Thurs. Feb. 11 to vote on the company\u2019s proposed sale to <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=BRK.A&amp;id=255744\" >Berkshire Hathaway Inc.<\/a> If the deal is approved, as expected, Warren Buffett\u2019s holding company will buy the 77% of Burlington shares it doesn\u2019t already own.<\/p>\n<p>Some or all of the proceeds from this takeout will be recycled by investors into other railroad stocks, which should increase the near-term buying pressure on the group. In fact, analysts at UBS estimate that of Burlington\u2019s US$34-billion market capitalization, institutional and retail investors account for about US$17-billion.<\/p>\n<p>\u201cWhile it\u2019s impossible to know how much will be recycled back into rails, it\u2019s probably a minority\u2014but a material minority or an immaterial minority?\u201d analysts Rick Paterson and Fadi Chamoun asked in a report. \u201cWhat we do know for sure is that it can\u2019t be a bad thing, so in our view it\u2019s better to be long rails in the near-term.\u201d<\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=390547\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Burlington Northern Santa Fe Corp. is holding a special meeting on Thurs. Feb. 11 to vote on the company\u2019s proposed sale to Berkshire Hathaway Inc. If the deal is approved, as expected, Warren Buffett\u2019s holding company will buy the 77% of Burlington shares it doesn\u2019t already own. Some or all of the proceeds from this [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-272421","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/272421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=272421"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/272421\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=272421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=272421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=272421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}