While merger and acquisition (M&A) activity has picked up of late in the gold
sector, this mornings multi-billion dollar deal involved two of the most
widely-held silver companies in the precious metals space. Pan American Silver
(PAAS) and Minefinders (MFL.TSX, AMEX: MFN) announced that they entered into a
definitive agreement whereby Pan American will acquire Minefinders for C$15.60
per share, or approximately for C$1.5 billion. The offer price represents a 36%
premium to last Fridays closing price for MFL.TSX of C$11.50 per share. Shares
of MFL.TSX surged as much as 27.7% to C$14.86 this morning and remained higher
by 25.5% at C$14.43 in mid-day trading.
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