Yeah, I would have smacked him too. Around here, I would have taken those words as a threat to steal Jupe and sell her to be a bait dog for dog fights.
My neighbor just told me another neighbor's French bulldog got stolen. He's very distraught because we all know what happens to a lot of stolen dogs, especially small and medium ones, around here.
So yeah, I would have taken those words as a threat against my dog and reacted accordingly.