I guess you can sue if the warrants are exercised. The warrants are likely to be exercised.
Now, I think that the warrants will be exercised and then they will raise capital. In essence, that is a very good gift. The common stock in that scenario could have a better return than preferred.
They could try to hold the warrants but I think in that scenario, the capital could not be raised. Mostly since the companies combined are probably not worth more than 200-250 billion max.