Fannie Mae-No Politics (FNMA)

[stockanalyze]

may not be as smart as ackman, but if someone can explain: how does risk of dilution goes down with increase in share price in this situation? i can see this happening if govt owned a specific dollar amount or the company had to raise a specifc $ amount but govt has 79.9% warrants. i assume ackman is assuming they will exercise warrants.