My company is planning to acquire your company. My company doesn$$t have a lot of cash, so my company is going to get a loan to buy your company. But, the bank requires that I pledge something in case I can$$t pay the loan back $--$ this is called $$collateral$.$ My company is planning to use your company as collateral on the loan. So$,$ if I can$$t pay off the loan later, the bank can take your company to cover the loan. This is called:

vertical merger

leveraged buyout $($LBO$)$

horizontal merger

conglomerate merger