Pan American Silver’s shares down
Pan American Silver’s shares slumped Monday in the wake of the Canadian miner’s move to buy smaller producer MAG Silver in a cash-and-stock deal valued at about $2.1 billion.
In morning trading, the shares were 14% lower at C$32.61 in Toronto and down 15% at $23.17 on the New York Stock Exchange. MAG Silver in contrast jumped 8.1% to C$25.49, widening its advance so far this year to 30%.
The deal between the Vancouver, British Columbia, companies will bolster Pan American’s position as a silver-and-gold producer in the Americas and add a stake in a big producing silver mine in Mexico. The agreement comes after precious-metals prices have rallied this year, encouraging a number of mergers and acquisitions among mining companies.
Source – Market Watch
