WRAPUP 9-Clinton to end White House bid and back Obama

*Obama looks toward general election against McCain

*Clinton prepares to back Obama

*McCain proposes series of joint town-hall meetings

*Obama returns to Congress for warm Democratic welcome

By John Whitesides, Political Correspondent

WASHINGTON, June 4 (Reuters) - Hillary Clinton will end her White House bid and declare her support for Barack Obama, aides said on Wednesday, drawing the curtain on a grueling 16-month nominating fight that badly split the Democratic Party.

Clinton will publicly back Obama on Saturday and pledge to work for party unity in the general-election race against Republican John McCain.

"Senator Clinton will be hosting an event in Washington, D.C. to thank her supporters and express her support for Senator Obama and party unity," a campaign statement said.

The event was originally planned for Friday but the day was switched to allow more supporters to attend. The New York senator has not decided whether to officially close the campaign or suspend it, allowing her to keep control of her delegates to the nominating convention, aides said.

Clinton spent much of the day talking to supporters, many of whom urged her to halt her bid now that Obama has clinched the nomination. Obama attended two fundraising events in New York City on Wednesday night and acknowledged her decision.

"Your junior senator from New York engaged in an extraordinary campaign," he told attendees at one fundraiser. "Now that the interfamily squabble is done, all of us can focus on what needs to be done in November."

Obama, the first black candidate to lead a major U.S. party into a White House race, announced a three-member team to head his search for a running mate as he began the task of unifying the party the day after clinching the nomination.

McCain proposed that Obama join him for a series of joint summer town-hall meetings across the country. Obama's campaign manager called the idea "appealing" but proposed format changes and made no immediate commitment.

Caroline Kennedy, daughter of the late President John Kennedy, will vet prospective Obama running mates along with former Deputy Attorney General Eric Holder and Jim Johnson, former chief executive of the mortgage lender Fannie Mae, who performed the same task for Democrats John Kerry in 2004 and Walter Mondale in 1984.

Near the top of their agenda will be questions about a possible teaming with Clinton, who has indicated interest in the job after her presidential bid fell short.

"We're going to be having a conversation in coming weeks," Obama told reporters when asked about the former first lady. He said he was confident the party would be unified to win the general election.