UPDATE 1-China's Daqin Railway to raise $2.4 bln in new shares

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SHANGHAI Nov 12 (Reuters) - China's Daqin Railway Co (601006.SS) said on Thursday it is planning to buy its parent's railway assets and will fund part of the deal by raising up to 16.5 billion yuan ($2.42 billion) from the sale of up to 2 billion new shares.

Daqin said in a statement it will buy the assets for 32.8 billion yuan, and it will cover the shortfall in cash.

The price of the new shares have not been fixed, but will not be less than the average price of the past 20 trading days, the firm said.

Daqin is a coal-transporting railway based in China's main coal producing province of Shanxi. Its shares last traded on Nov 6, ending at 11.35 yuan, up nearly 24 percent over the past year.

Last week Warren Buffett's Berkshire Hathaway Inc (BRKa.N)(BRKb.N) said it will pay $26 billion to buy out Burlington Northern Santa Fe Corp BNI.N in a bet the U.S. largest rail company will benefit from a recovering economy. [ID:nN03483590] ($1=6.825 yuan) (Reporting by Melanie Lee and Alfred Cang; Editing by Kim Coghill)