Don't follow the logic. Exercising the options now does nothing...

Don't follow the logic.
Exercising the options now does nothing to protect their position. They could just as easily have exercised options post any deal announcement. In fact in most takeovers the incoming party simply buys the options at full value (bid price less exercise price) and that is their preference as it means a smaller headline acquisition cost ($m) than having to pay for converted options and getting the cash back from the option conversion from the company's coffers.