By ERIN KILLIAN
Washington Business Journal

XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. are two steps closer to completing their merger. Stockholders at both companies voted on Tuesday to approve a deal that has been under scrutiny by federal regulators.

At a special stockholders' meeting, New York City-based Sirius said a preliminary count revealed that 96 percent of the shares voted were in favor of the transaction that the companies announced in February. Under the deal, Sirius will pay 4.6 shares for each XM share.

Shareholders for Washington, D.C.-based XM also voted in favor of the deal, with 99.8 percent of shareholders in the preliminary tally approving the merger.

The companies are still awaiting approval from the Federal Communications Commission, which is determining whether the merger complies with antitrust laws.

Last week, the agency sent letters to the companies requesting documents on their business operations. The FCC also asked for information that supports claims that the merger will benefit consumers.

XM and Sirius have until Friday to respond.

The companies said they expect the merger to be complete by the end of the year.

The future of XM hangs on the merger. The company has faced continual losses because its retail sales are slowing in anticipation of the deal. In its earnings for the quarter ended Sept. 30, the company lost $145 million, nearly double its year-ago loss of $85 million.