Tuesday, December 22, 2009

Buffett: "We're not going to starve" BNSF

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For railroad suppliers who are wondering how BNSF Railway's large capital improvement programs will fare under new ownership, there's reassuring news in the transcript of an in-house interview between Warren Buffett and BNSF CEO Matt Rose that was taped for the benefit of employees.

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While Buffett's Berkshire Hathaway, Inc. is borrowing $8 billion to finance the $26 billion purchase of BNSF, he assured the railroad's employees that he won’t use railroad assets to pay off Berkshire debt, and will continue to invest in the railroad's infrastructure. “It’d be crazy if we didn’t,” said Buffett. “We’re not going to buy a business and starve it.”

The interview was included in a regulatory filing Dec. 21.