Not the warrants but the preferred shares. Basically if a company tries a hostile takeover mgmt will dilute their interest, and thus ours, to the point that their efforts are in vein; blank check preferred shares allows for unlimited common share conversion. I assume that the potential holders of the preferred shares are friendly to the cause.
As shareholders we dont want a hostile takeover...bidding war would be best for our interests if we only care about max profit. For patients I believe Zimmer is best suited to take over Si3N4.