Fleet-Norstar Financial Group of Providence, R.I., said...

Fleet-Norstar Financial Group of Providence, R.I., said it has agreed to acquire Indian Head Banks Inc., a leading New Hampshire bank, in an exchange of stock valued at $240 million. The deal, which is subject to approval by regulators and shareholders of Indian Head, calls for Fleet-Norstar to exchange 1.775 shares of its common stock for each of Indian Head’s 4.7 million shares of common stock outstanding. Indian Head Banks, based in Nashua, has assets of about $1.8 billion, 46 branches throughout New Hampshire and earned $16.6 million in 1987, the company said.