The Employees Retirement System of the City of New Orleans (NOERS) has sued Warren Buffett's Berkshire Hathaway and Burlington Northern Santa Fe (BNSF) alleging Berkshire's planned acquisition of BNSF discriminated other investors.
Under the terms of the proposed acquisition agreement announced on November 3, Berkshire will purchase the remaining shares of BNSF that it does not currently own for US$100 a share. Berkshire already owns over 23% of BNSF. Law firm Scott & Scott - who represents NOERS in the suit - said the agreement was finalized over the past 10 days, and BNSF board of directors "made no effort" to find a higher bidder for the company. According to the complaint in the District Court of Dallas County, BNSF and the members of its board of directors, as well as Berkshire, were all charged with breach...
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