American Health Stock Purchase Falls Through : Transaction: Its buyer, a New York group, failed to reach an agreement with the German firm that owns the stake.

A New York investment group that had an option to buy 28% of American Health Services Corp. by paying $3.2 million for the company’s preferred stock decided not to proceed with the transaction, an American Health official said late Friday.

E. Larry Atkins, president and chief executive, said an attorney for Siegler, Collery & Co., the New York investment firm that had proposed buying 85% of American Health’s preferred shares--convertible to a 28% stake in the company--informed American Health Friday that the proposed deal had fallen through.

Atkins said Siegler Collery was unable to reach an agreement on terms of the stock transaction with Harpener AG, a German firm that wants to sell its large stake in American Health. Based in Newport Beach, American Health develops and operates medical diagnostic imaging centers for hospitals. Until recently, Harpener was controlled by OmniCorp., a Swiss conglomerate that has filed for bankruptcy.

Atkins said a representative of Harpener has agreed to give Atkins 30 to 45 days to find an alternative buyer for its stock, who would be entitled to fill two seats on the company’s board of directors. “As chief executive, I can go out to find a very strong and supportive buyer, someone who understands the business and has the cash to support the company’s growth,” he said.