Nov. 5 (Bloomberg) -- Warren Buffett’sBerkshire Hathaway Inc. and Burlington Northern Santa Fe Corp. were sued by investors over claims Berkshire’s acquisition of the railroad won’t maximize shareholder value.

The lawsuit, filed yesterday in Texas state court, claims directors at Burlington Northern didn’t provide shareholders with sufficient information allowing them to determine whether they should tender their shares for the merger agreement.

Burlington Northern directors agreed to a termination fee, a “no-shop no-talk” provision and other protections for Berkshire “well before any price-maximizing process took place in a blatant effort to ensure that controlling shareholder, Berkshire, their favored partner, is Burlington Northern’s ultimate acquirer,” according to a copy of the complaint provided by the investors’ lawyers.

Buffett, who built Berkshire over more than four decades, is taking on debt and spending the company’s cash as the economic crisis curbs expansion at some U.S. firms. Berkshire agreed to pay $26 billion for the 77.4 percent of Fort Worth, Texas-based Burlington Northern it didn’t already own and assume $10 billion in net debt.

Buffett’s assistant Carrie Kizer and Lena Kent, a Burlington Northern spokeswoman, didn’t immediately respond to requests for comment after regular business hours yesterday.

Theodore Anderson, a lawyer representing the shareholders, didn’t immediately return a call seeking comment after regular business hours yesterday.

Burlington Northern rose more than 27 percent Nov. 3, after announcing it would be acquired by Berkshire for $100 a share. The railroad’s shares rose 10 cents to 97.10 in New York Stock Exchange composite trading yesterday.

The case is Employees Retirement System of the City of New Orleans v. Burlington Northern Santa Fe, 09-14950, Texas District Court (Dallas County).

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

Last Updated: November 5, 2009 00:01 EST