The Globe and Mail reports in its Tuesday edition that Pan American Silver has reached a friendly arrangement to buy Mag Silver in a $2.1-billion stock-and-cash deal that has not gone down well with shareholders (all figures U.S.). The Globe's Niall McGee writes that Mag's sole producing asset is its 44-per-cent share in the Juanicipio silver mine in Mexico. Founded by stock promoter Ross Beaty, Pan American is one of the biggest silver producers on the planet, with a portfolio of 10 mines in seven countries. For each share held, Mag investors can choose to receive $20.54 in cash, 0.755 share of Pan American or a combination of both. The maximum amount of cash that Pan American will pay out is $500-million. Pan American's offer was 21 per cent above Mag's Friday closing price, but it shrunk rapidly once trading started Monday. Mag shares climbed by only 6.5 per cent, while Pan American's stock fell by 15.9 per cent. RBC analyst Michael Siperco gave the deal a mixed review in a note, calling it "a solid portfolio upgrade" for Pan American, but one that comes with a price: While significantly increasing Pan American's near-term silver production, it would dilute its net asset value, earnings and free cash flow.