The US market regulator SEC is looking into the disclosures made by Warren Buffett's Berkshire Hathaway related to the group's $26 billion buyout of Burlington Northern Santa Fe Corp last year, says a media report.
The Securities and Exchange Commission (SEC) is examining the disclosures Berkshire Hathaway made about its $26 billion purchase of railway company Burlington Northern Santa Fe Corp, the Wall Street Journal has reported quoting people familiar with the matter.
According to the daily, for a number of weeks, the SEC has been looking at how Berkshire, informed other Burlington shareholders about its offer to buy the company in late October 2009. At that time, Berkshire was a 22.6 per cent holder of Burlington stock.
Under a section of securities law generally known as '13D' -- a reporting law -- large holders must promptly alert other stockholders of any plans or proposals to control a company.
"Buffett amended his securities holdings on November 3, 2009, the day the acquisition was announced. Securities filings show that he first indicated he could pay $100 for each Burlington share to company chief executive Matthew K Rose on the evening of October 23," the publication said.
Going by the daily, the reporting law is intended to help company officers by limiting the ability of shareholders to make a surprise takeover offer.
"The SEC's corporation-finance division is handling the matter, and is so far just examining the facts of the transaction. The results of that analysis will determine whether SEC's enforcement unit would open an inquiry," it added.
