American Airlines Given OK to Buy AirCal Stock

The U.S. Department of Transportation has given American Airlines a green light to acquire 70.4% of the common stock of ACI Holdings and place it in a voting trust pending completion of its proposed $225-million purchase of the holding company for Newport Beach-based AirCal.

A spokesman for American said the stock trust “protects us from other potential tender offers” for AirCal, until the Department of Transportation rules on whether American may complete the merger.

The department did not give any indication Friday when it will make a decision on the merger. By law, it has until May 22 to act, although American Airlines has asked for the process to be expedited. So far, no objections have been raised to the merger, but DOT spokesman Joseph E. Stroop III said complaints may be filed until Dec. 15.

American said it will purchase the 70.4% stake from ACI’s two principal shareholders--builders William Lyon and George L. Argyros--within the next several days.

The shares will be held in a trust over which Lyon and Argyros will retain voting control. Although American will own the majority of ACI’s stock, it cannot exercise any management authority until the merger is completed, American spokesman John Hotard said. Until then, he said, “It will be business as usual at AirCal.”