Coles ends talks with TPG Capital over Greencross buy, shares jump
XLP•Analysts and market reaction
"We believe this is at least partly due to the negative investor feedback surrounding the deal," Citi analysts said in a note.
Local media reports had said TPG was likely aiming for an A$4 billion ($2.80 billion) deal, the valuation it had planned to seek for the business in a potential float.
Brokerage Citi had several concerns about the deal, including the potential funding structure and a weakening outlook for the pet care industry.
Coles shares rose as much as 5% to A$23.68 on Friday and were on track for their biggest one-day gain since early March, pushing the staples sub-index .AXSJ more than 2% higher.
TPG Capital did not immediately respond to a Reuters request for comment.
($1 = 1.4294 Australian dollars)
Coles ends talks over Greencross acquisition
Australia's Coles Group said on Friday it had ended discussions with U.S. private equity firm TPG Capital over a potential acquisition of Greencross Pet Wellness, sending its shares up as much as 5%.
The announcement came weeks after Australia's No. 2 grocer confirmed talks were underway for the purchase of the pets and vets business, a disclosure that had sent its shares down more than 4%.
