White Knight strategy

The text goes as ” This tactic is acceptable provided that any info given to preferred bidder is also given to hostile bidder”….I mean why??

Is it because maybe the hostile bid is in the best interests of shareholders but hostile bid would result in the management losing their jobs and so they want to be acquired by a company where their power would still be there??

One more thing,
After a reverse takeover, what happens to the shares of the “private company”? I know the private company’s shareholders exchange their shares for shares in public company but what happens then to those private company’s shares?

Thanks a lot