* Jan. 20 shareholder vote set
* Berkshire seeks 50-for-1 split of B shares
* Buffett controls nearly one-third of voting power
NEW YORK, Dec 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N: 行情) (BRKb.N: 行情) on Friday set a Jan. 20 shareholder vote on a stock split related to the company's planned $26.4 billion takeover of Burlington Northern Santa Fe Corp (BNI.N: 行情).
Berkshire is asking shareholders to approve a 50-for-1 split of its Class B shares, which closed Thursday at $3,291.
Buffett has said a split will make it easier for shareholders of the second-largest U.S. railroad operator to swap their shares for Berkshire stock when the merger closes, which is expected in the first quarter of 2010.
In a regulatory filing, Berkshire also asked shareholders to approve several related proposals, including authorization to increase the number of its shares outstanding. Shareholders of record as of Nov. 30 are entitled to vote.
As of Nov. 30, there were 1.06 million Berkshire Class A shares and 14.87 million Class B shares.
A split would increase the number of Class B shares to about 743 million. A Class B share is now worth roughly one-thirtieth of a Class A share.
The shareholder meeting will be held in Omaha, Nebraska, where Berkshire is based. Burlington Northern is based in Fort Worth, Texas. Berkshire now owns 22.6 percent of the company.
A stock split increases the number of shares and reduces the share price. It does not change a company's market value, yet can increase liquidity and lead to a higher share price because it allows smaller investors to buy more stock.
Share Investor LinksShare Investor Blog - Stockmarket & Business commentary
Share Investor New Zealand Business News- Get more business news
Discuss this topic @ Share Investor Forum - Register free
Share Investor's Daily Forex Updates
Recommended Amazon Reading
 | The Essays of Warren Buffett: Lessons for Corporate America, Second Edition by Warren E. Buffett Buy new: $26.20 / Used from: $33.33 Usually ships in 24 hours |
 | Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage by Mary Buffett Buy new: $16.47 / Used from: $13.25 Usually ships in 24 hours |
Kindle 2/Kindle DX: Amazon's New Wireless Reading Devices (Latest Generation)
No comments:
Post a Comment