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264 Million Termination Fee In Burlington Northern/Berkshire Deal

By Lavonne Kuykendall, Of DOW JONES NEWSWIRES

CHICAGO -(Dow Jones)- Berkshire Hathaway Inc.'s (BRK.A, BRK.B) agreement to acquire Burlington Northern Santa Fe Corp. (BNI) calls for the railroad to pay a $264 million termination fee if it fails to go through with the deal.

Buffett's deal to buy Burlington Northern values the entire company at $34 billion, plus $10 billion in debt, and is expected to close in the first quarter of 2010.

In interviews, Buffett said the deal was struck quickly once discussions began.

The merger agreement calls for Burlington Northern to pay the $264 million breakup fee under a variety of situations, including if it enters into a " superior proposal," or if its board turns down the offer.

-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750 4141; lavonne.kuykendall@dowjones.com

  (END) Dow Jones Newswires
  11-03-091716ET
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