DOW JONES NEWSWIRES 
 

Pulte Homes Inc. (PHM) and Centex Corp. (CTX) said shareholders of each company overwhelmingly approved their merger, which will create the largest U.S. homebuilder.

Pulte and Centex received votes representing more than 80% and 72%, respectively, of shares outstanding, with more than 99% of these voted in support of the deal.

Under the $1.4 billion merger, Pulte will acquire all outstanding Centex shares in a stock-for-stock transaction. Centex shareholders will receive 0.975 shares of Pulte stock in exchange for each Centex share they own.

Based on the exchange rate, Pulte shareholders will own about 68% of the combined company, and Centex shareholders will own the rest.

Pulte Chief Executive Richard Dugas, who becomes chairman and CEO of the combined company, said the merger "can accelerate our return to profitability."

Earlier this month, Centex swung to a quarterly profit, thanks to an income-tax benefit, while Pulte posted a wider loss. The nation's housing sector, which has been in decline for more than three years, recently has shown some signs of improvement but high unemployment and low consumer confidence are weakening prospects for a full-blown recovery soon.

Also Tuesday, the companies said Centex' previous chairman and chief executive, Timothy Eller, will join the board as vice chairman and will be a consultant to the company for two years.

The new company, with 2008 pro forma revenue of $11.6 billion, will continue to trade on the New York Stock Exchange under the ticker symbol "PHM."

Pulte's shares recently traded at $12.38, up 6 cents or 0.5%, while Centex shares were at $12.06, up 7 cents or 0.5%.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com