Fannie Mae-No Politics (FNMA)

[kthomp19]

If the government wants to earn as much money as possible with the warrants, the price must be as high as possible as soon as the SPS are canceled.

On the other hand, if the government wants as much money as possible period (regardless of whether it comes from the warrants), they will convert the seniors to commons instead, which means they would actually want the per-share price to be lower. This is why Ackman fears that scenario so much.