Washington Group says holders approve URS deal

(Recasts first paragraph, adds background, share price)

HOUSTON, Nov 15 (Reuters) - Engineering and construction firm Washington Group International Inc WNG.N said on Thursday that its shareholders had approved a sweetened $3.2 billion bid from rival URS Corp (URS.N), ending a contentious takeover battle.

The deal is expected to close later today, Washington Group said in a brief statement.

Representatives for Washington Group, based in Boise, Idaho, were not available to provide additional details about the results of the vote.

The route to the deal, first announced in May, has been bumpy. A number of major shareholders opposed the original offer, which they said had undervalued Washington Group.

Even as late as Wednesday, hedge fund Greenlight Capital Inc., which owns about 10 percent of Washington Group, said it would withhold its support of the sweetened bid.

URS, based in San Francisco, raised its offer by nearly 9 percent earlier this month after initially failing to secure the shareholder votes needed to approve the cash and stock deal.

Shares of Washington Group climbed nearly $4.64, or 5 percent, to $96.65 on the New York Stock Exchange. URS rose $3.06, or 5.5 percent, to $58.81.

(Reporting by Anna Driver in Houston; Editing by Lisa Von Ahn)

((anna.driver@reuters.com; 1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net)) Keywords: WASHINGTONGROUP TAKEOVER/URS

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