Heritage-Narragansett deal gets cool investor response

Heritage chairman and CEO Bruce Lucas has described the
Floridian's $250mn deal for northeast US insurer Narragansett
Bay as a "game changer".
But investors appear unconvinced that the potential benefits of
the transaction in growth and reinsurance synergies outweigh the
dilutive and debt-levering impact of its financing.
Shares traded down sharply last week after
markets reacted negatively to the homeowners' specialist filing
details of a $125mn convertible debt issue to fund part of the
$210mn