Shareholders in Long Beach Financial Corp., a subprime mortgage specialist, have approved the $350 million deal to sell the company to Washington Mutual Inc.

The vote took place Monday. The deal is expected to close Oct. 1, pending regulatory approval.

The agreement requires that no more than 48% of the total merger consideration be paid in cash. Each shareholder preferring cash will receive $10.03 in cash per share and the remaining $5.47 in Washington Mutual stock. Shareholders not electing cash will receive $15.50 per share in the form of Washington Mutual stock.

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