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Burlington Northern Inc. and Santa Fe Pacific Corp. announced Thursday that they are set financially to undertake their proposed friendly merger through a joint tender offer, under which both railroads will purchase a total of 63 million shares of Santa Fe stock.
Under terms of the $4 billion merger, Santa Fe shareholders will receive 0.40 of a Burlington share for each of their shares. Schaumburg-based Santa Fe is allowed, subject to conditions, to repurchase up to 10 million more shares, which would boost the exchange ratio to a maximum of 0.4347 of a Burlington share for each Santa Fe share.
