Advertisement

A suit was filed to block Eastern Airlines’ merger.

Share

A group of employees filed the lawsuit seeking to block a meeting at which shareholders are expected to approve a $676-million takeover offer by Texas Air Corp. The newly formed Eastern Airlines Employee Coalition Acquisition Inc., representing members of the airline’s major labor unions, also said it had obtained financing for a $600-million cash buyout of its own. The suit, filed in U.S. District Court in Miami, asks for a preliminary injunction against the Nov. 25 meeting, complaining that Eastern’s board of directors had refused to consider a counter buyout offer from employees, who own 25% of the company.

Advertisement