This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Buffett Gets Anti-Trust Nod, but Suits Loom

OMAHA, Neb. ( TheStreet) -- Berkshire Hathaway (BRK.B) has cleared one hurdle in its planned acquisition of Burlington Northern (BNI): the Federal Trade Commission said this morning that it's granted antitrust approval for the acquisition.

Berkshire, which has steadily increased its stake in Burlington since its first significant purchase of the railroad stock in April 2007, is planning to acquire the 77.4% of Burlington Northern it does not already own for $26.4 billion.

The stocks were virtually unchanged on Monday morning trading, with both Berkshire and Burlington up approximately 0.5%.

Stockpickr Tools
Warren Buffett's Portfolio

Berkshire announced last week that it will hold on Jan. 20 the shareholder meeting to vote on the 50-1 stock split that is being recommended as part of the acquisition.

Set against the full-speed-ahead nature of the antitrust clearance and shareholder meeting, legal battles over the deal's value are heating up, according to the Fort Worth Star-Telegram. Lawyers in Texas and Delaware are expected to merge lawsuits into one class-action suit arguing that the $100 per share that Berkshire has agreed to pay for Burlington stock -- a 31% premium -- is a lowball offer.

The lawyers are aiming for what the courts call a case on a contingency basis, which is intended to force Berkshire to pay significantly more for the rail operator either through a jury verdict or settlement.

RELATED STORIES:

-- Reported by Eric Rosenbaum in New York.


Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs