Texas Air was allowed to raise its Eastern stake.
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The Transportation Department gave Texas Air permission to buy more Eastern Airlines stock but said most of the shares must go into a voting trust until the government decides whether the airlines can merge. The ruling said Texas Air, the parent company of Continental Airlines and New York Air, may purchase up to 51% of Eastern. The company has “beneficial ownership” of nearly 40% of the airline, including about 10 million unissued shares on which Texas Air has an option.
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