Sale of Stock of Subsidiary - Ability to Continue Health FSA

[Guest rocnrols2]

Company X maintains a 125 plan with a medical flexible spending account. Company X acquires the stock of Company Y-8, a subsidiary of Company Y. If the employees of Y-8 participate in Y's 125 with medical flexible spending account, may the Y-8 employees have their FSAs begin on X's 125 plan as of the closing date, as was the case in situation (2) of Rev. Proc. 2002-32? I know the facts of Rev. Rul. 2002-32 applied to a sale of assets. Is there any reason why they can't apply to a sale of stock?