Berkshire Ups Stake in BNSF, and May Consider a Takeover

Warren E. Buffett’s Berkshire Hathaway has increased its stake in Burlington Northern Santa Fe with the purchase of 10 million additional shares, now owning nearly 15 percent of the railroad company (see article from DealBook). Is an acquisition on the horizon for the infamous investor? We decided to find out what connections (other than company ownership) Berkshire has with BNSF through the creation of an IntellectSpace Knowledge Map. The relationships found suggest that Buffet and Berkshire may be inching toward a takeover.

The first thing we noticed after generating the Knowledge Map was Walter Scott Jr.’s (Director of Berkshire) numerous links to BNSF. He is currently a director at Burlington Resources, which is a spin-off company of BNSF. Also, he has multiple ties to Michael B. Yanney, who was a director at BNSF until 2005. These connections could prove useful as Berkshire strengthens its hold on the company.

Another significant connection is shared between Ronald L. Olson (Director of Berkshire) and Vilma S. Martinez (Director of BNSF). Both are longtime Partners at the law firm Munger, Tolles & Olson LLP. It is likely that the two are well acquainted after being at the firm together for almost three decades. This could be another relationship that Buffet may use to his advantage if he has his sights set on BNSF.

Click here for an interactive version of this IntellectSpace Knowledge Map (Internet Explorer browsers only): http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=13285cce-0e6d-4c0b-9af2-9307bce3e232