Stockholders of Lorimar Telepictures approved a proposed...

Stockholders of Lorimar Telepictures approved a proposed $600-million merger with Warner Communications at the company’s annual meeting Thursday--the same day that a New York appeals court issued a ruling blocking the merger unless Lorimar sells its three TV stations. The appellate division of the New York Supreme Court unanimously affirmed a lower court ruling that blocked the merger because it violated an agreement between Warner and its biggest shareholder, Chris-Craft Industries. The agreement prohibits Warner from owning any TV stations so long as it held 25% or more of Chris-Craft’s broadcasting subsidiary. Warner currently owns a 42.5% stake in the unit.