Berkshire Hathaway sells 2 short-line railroads

News

December 27th, 2012 by Ric Hanson

OMAHA, Neb. (AP) — Warren Buffett’s company has sold off the two short-line railroads it discovered owning this fall to satisfy regulators who might have reviewed Berkshire Hathaway’s 2010 acquisition of the BNSF railroad. Berkshire told the Transportation Department’s Surface Transportation Board earlier this month that it had recently completed the sale of both short-line railroads ahead of schedule.

If Berkshire had reported owning those railroads when it acquired Burlington National Sante Fe Corporation, the Surface Transportation Board would have scrutinized the deal. Berkshire sold the 12-mile-long WCTU railroad that serves an industrial park near Medford, Oregon to RVTR Rail Holdings in December.

The 6-mile-long CBEC railroad that serves one of MidAmerican Energy’s coal plants near Council Bluffs, Iowa, was sold to its two other co-owners in November.