Berkshire Hathaway to sell railroads it didn't know it owned [View all]
Source: Omaha World Herald
Berkshire Hathaway recently discovered it owns two short-line railroads that it must sell because of its 2010 acquisition of BNSF Railway.
Warren Buffett's Omaha-based company said in a letter last month to the Transportation Department's Surface Transportation Board that the BNSF deal should have been subjected to the board's scrutiny because two Berkshire subsidiaries own the small railroads. The Surface Transportation Board reviews rail mergers, purchases, construction and rate disputes.
Agency officials appear satisfied with Berkshire's plan to sell the two small railroads by the end of the year, but Director Lucille Marvin said in a letter that the board is still weighing further action.
Buffett's company didn't immediately respond to a message. But in correspondence disclosing the problem to regulators, Berkshire officials suggest the company's size was the reason the short-line railroads were overlooked until now.