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Yes the can breed and the resulting fry are called muppies. So funny. I am told that the resulting babies are not that healthy though. Or that they can't breed themselves. Hopefully someone will chime in with weather or not this is true.
I wouldn't try to get them to breed. You wouldn't want sick deformed babies, would you? I have nothing against hybrid fish as long as you can breed healthy babies, but if you already know the babies will not be healthy, why do it?