InsideArbitrage Event Driven Monitor – May 2, 2025

Merger Arbitrage

1. KRON: The acquisition of Kronos Bio, Inc. (KRON) by Concentra Biosciences, LLC, for a closing value of $34.86 million. Under the terms of the agreement, Concentra will acquire Kronos Bio for $0.57 in cash per share of Kronos Bio common stock, plus one non-tradeable contingent value right (CVR). The potential payments depend on certain events: shareholders will get 50% of any money made if Kronos Bio’s drug candidates KB-9558 and KB-7898 are sold within two years after the deal closes; 100% of proceeds from any sale of drug candidates KB-0742, lanraplenib, or entospletinib if sold before the deal closes; 100% of cost savings realized before the deal closes; 80% of savings made within the first two years after closing; and 50% of savings from the third year after closing. All of these terms are governed by a CVR agreement. (Press Release)
2. PRA: ProAssurance (PRA) filed the preliminary proxy statement for its acquisition by The Doctors Company. The company expects the merger to be completed during the first half of 2026.
3. X: Reuters reported that hedge fund Third Point owns a “meaningful” stake in U.S. Steel (X) and expects a merger with Japanese rival Nippon Steel to go ahead. Billionaire investor Daniel Loeb told investors in a letter that the firm believes U.S. Steel “will complete a planned merger with Nippon Steel based on the industrial logic of the combination.”

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