A company earns lets say $10Billion per year consistently.
it has 1 Billion shares outstanding
Thats an EPS of $10 per share.
A multiple of 10x eps = 100 per share.
NOW i realize this isnt quite fannie but all in its really close.
So...
All things being equal this fair value would be $100 per share.
Why would a conversion less than fair value on preferred par value be less?
$25 par preferred would convert to 1/4 share ... $50 at 1/2 share.
Since the preferred were not "convertible" as issued... it would be silly to suggest par preferred of $25 would convert to 8 shares common when the common fair value is depressed to $3 a share. That would be suicide for the share structure and not in line w preservng and conserving the companies.
ie.. the court has already found that doing short sided deals are against the rule of law.
They really should be careful or there will be more lawsuits