Jane,
If a private company buys all of the stock of a public company and takes it private, that ends the public status of the company. If it wanted to go public again, it would have to start from scratch. You have probably noticed that a lot of companies that were previously taken private by private equity groups are now going public again.
If the private company buys only a portion of the public company, it will remain a "public" entity, even if it ceases to file reports with the SEC. As you correctly note, if the company ceases to file reports with the SEC, it drops to the pink sheets. If the company subsequently becomes current in its filings, it can move off of the pinks.
That may not be the question you are asking. A private company can buy the assets, though not the stock, of a company, essentially emptying the company and turning it into a shell. If the shell ceases filing reports with the SEC and drops to the pink, can it be resurrected? The answer is yes. The fact that a shell is a "public" entity, whether it is current in its filings or not, gives it some value. There are hundreds of shells available for reverse mergers.
Regards,
Glenn |
