The announcement by Kinetic Concepts, Inc. that it agreed to a takeover of Kinetic Concepts by a consortium of funds prompted an investigation on behalf of investors of Kinetic Concepts, Inc. (NYSE: KCI) concerning whether a takeover is unfair to KCI stockholders and whether certain officers and directors possibly breached their fiduciary duties.

The investigation by a law firm concerns whether Kinetic Concepts Inc, certain of its officers and directors, and/or others breached their fiduciary duties owed to Kinetic Concepts, Inc. (NYSE:KCI) investors in connection with the takeover.

Following a media report said that Kinetic Concepts, Inc. is in talks on leveraged buyout and might be taken over shares of Kinetic Concepts, Inc. (Public, NYSE:KCI) jumped already on Wednesday, July 6, 2011 from roughly $58.50 to as high as $67.03 per share.

Then on July 13, 2011, Kinetic Concepts, Inc. (NYSE: KCI) announced that it has entered into a merger agreement under which a consortium comprised of funds advised by Apax Partners, together with controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, will acquire Kinetic Concepts, Inc for $68.50 per KCI share in cash in a transaction valued at $6.3 billion (including KCIs outstanding debt).
Kinetic Concepts, Inc said the $68.50 offer represents a premium of approximately 21 percent to the one-month historical average stock price of $56.49 through July 5, 2011 (one day prior to speculation of a transaction) and a premium of 52 percent to the 12-month historical average stock price of $45.01 through July 5, 2011.

However, Kinetic Concepts, Inc. has performed well for its investors in the past. Its 12months Total Revenue rose from $1.6billion in 2007 to $2.01billion in 2010. Kinetic Concepts reported an increased first quarter Revenue for the first quarter in 2011. Its first quarter Revenue went from $485.81million a year earlier to $501.18million. Its first quarter quarterly Net Income rose from $52.71million to $68.42million.

Therefore the investigation by a law firm questions whether the potential sale process and the price are unfair to the shareholders of Kinetic Concepts, Inc. (NYSE:KCI). The investigation focuses also on whether the Kinetic Concepts board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Kinetic Concepts, Inc. (NYSE: KCI) and breached their fiduciary duties to Kinetic Concepts, Inc. (NYSE: KCI) shareholder by failing to adequately shop the Company before entering into the transaction.

Kinetic Concepts, Inc said that James R. Leininger, founder of Kinetic Concepts and chairman emeritus, and certain shareholder parties related to or affiliated with him, which collectively hold approximately 11% of the companys outstanding shares, have already entered into a voting agreement with the consortium under which those shareholders have agreed to vote their shares in favor of the transaction.

The investigation concerns also whether the consortium would underpay for NYSE:KCI shares, thus unlawfully harming Kinetic Concepts (NYSE:KCI) investors. A potential class action lawsuit would seek to maximize the amount of money and information NYSE KCI shareholders would receive in a buyout, so the law firm.