Deals
Hostile Aphria Bid Adds to Drama for Pot Firm Under Short Attack
- Some on Wall Street skeptical over links to Green Growth
- Aphria shares rise but remain below proposed offer price
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U.S. cannabis retailer Green Growth Brands Ltd.’s unsolicited takeover offer for a Canadian pot producer is meeting skepticism from investors who question its ability to afford the transaction.
The proposed deal, announced Thursday, would see Green Growth acquire Aphria Inc. for C$2.8 billion ($2.1 billion). Aphria rejected the overture, and while it’s stock was up 13 percent to C$8.49 at 1:38 p.m. in Toronto on Friday, it remained below the proposed C$11 offer price. Green Growth, which trades as Xanthic Biopharma Inc., swung between gains and losses around C$5.