Assertion: There is no possibility of a purchasing company becoming a subsidiary of the purchased company in a merger.
Reasoning: A private company can takeover a public limited company.
Reasoning: A private company can takeover a public limited company.
Answer & explanation
Correct answer: option 4
Back flip acquisition: A very rare case of acquisition in which the purchasing company becomes a subsidiary of the purchased company.
. Reverse acquisition: A private company takes over a public company.
. Reverse acquisition: A private company takes over a public company.