Buffett's Berkshire to buy Russell
Athletic clothing maker agrees to be acquired for as much as $600 million, stock soars after hours.

NEW YORK (CNNMoney.com) - Berkshire Hathaway Inc., the holding company run by billionaire investor Warren Buffett, announced plans Monday to buy athletic clothing maker Russell Corp., in a deal that could be valued at as much as $600 million.

Shares of Russell (Research), which makes sportswear under the Jerzees, Spalding and Huffy brands, skyrocketed over 35 percent in after hours trade Monday. Shares of Berkshire (Research) were unchanged after the closing bell.

In a joint press release, the two companies said that Russell stockholders will receive $18 per share under the terms of the deal, which is expected to close in the third quarter of 2006.

"Russell will be better positioned against our worldwide competitors in all three segments of our business and that includes apparel, sports equipment and athletic shoes," Jack Ward, Russell's chairman and CEO, said in a statement.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.