UPDATE 1-AG Edwards stockholders OK takeover by Wachovia

(Adds background on deal, share price)

NEW YORK, Sept 28 (Reuters) - Shareholders of A.G. Edwards Inc AGE.N on Friday approved a $6.6 billion takeover of the independent brokerage by Wachovia Corp. WB.N, creating the second-largest publicly traded retail brokerage.

A.G. Edwards said in a regulatory filing it expects the deal to close on or around Oct. 1.

The combined brokerage, to be called Wachovia Securities, will be based in St. Louis, where A.G. Edwards is headquartered.

About 4,000 jobs will be eliminated as a result of the combination.

Wachovia agreed in May to buy A.G. Edwards for $6.8 billion. The value of the stock-and-cash merger is now about $6.6 billion.

The Wall Street Journal, citing people familiar with the situation, reported on Friday that A.G. Edwards employees are rattled that only eight of 45 analysts in its independent research unit are being offered jobs in the combined company.

Shares of A.G. Edwards were down 15 cents at $85.61 in afternoon trading on the New York Stock Exchange. Wachovia shares were down 8 cents at $50.58. (Reporting by Anupreeta Das and Jonathan Stempel)