Bankers Trust Corp. shareholders approved the proposed merger with Deutsche Bank AG by a slim margin Tuesday.

The vote was 70.3% in favor of the deal. Bankers Trust needed approval from two-thirds of its shareholders to proceed with the $10 billion transaction, which was announced Nov. 30.

The deal is expected to close before the end of the second quarter, pending U.S. regulatory approval, Frank N. Newman, Bankers Trust's chairman and chief executive officer, told a special meeting of shareholders.

About a dozen shareholders took a turn at the microphone to voice dissatisfaction that the $93-a-share deal was for cash rather than stock. Cash mergers can trigger capital gains taxes for shareholders.

Mr. Newman responded that the board considered a number of strategic alternatives but determined that the all-cash deal was in the best interest of shareholders.

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