Investors Drop Offer for InSight Health

InSight Health Services Corp. said Wednesday that a $28.6-million buyout offer has been withdrawn by investors who cited other business opportunities that may be available to the diagnostic-imaging provider.

The Carlyle Group and the Halifax Group, which were offering to buy shares they didn’t already own, said they no longer would pursue a $10-a-share offer for InSight’s outstanding stock. The investor group owns about one-third of the Newport Beach-based company’s voting shares.

The investors faced a lawsuit from shareholders who said the offer was inadequate because of InSight’s earnings potential. The offer represented a 51% premium from InSight’s May 17 closing price, the day before the investors made their bid.

“The Carlyle Group remains committed to its association with InSight and its management team,” Glenn Youngkin, Carlyle Group partner and an InSight director, said in a statement.

InSight officials were not immediately available for comment.

The stock closed Wednesday at $8.56, down 6 cents a share.