Court Refuses to Block Vote on Eastern Merger
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MIAMI — A federal judge, citing the likely financial damage of further delays, on Monday refused to block an Eastern Airlines shareholder vote today that is expected to approve the takeover of the airline by Texas Air Corp.
Chief U.S. District Judge James Lawrence King rejected a request for an injunction made by a coalition of Eastern unions. The coalition, which has made its own offer to buy the troubled carrier, has called the Texas Air deal illegal and wants to force Eastern’s board to consider an employee buyout.
King noted that the coalition could appeal his ruling before the shareholders meeting in New York.
The vote by shareholders is the last step in the $676-million Texas Air-Eastern deal, which already has federal government approval. Eastern’s board last month elected Texas Air Chairman Francisco (Frank) Lorenzo as its new chairman.
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