Alliance Imaging Inc. announces termination of discussions with U.S. Diagnostic Labs Inc.ORANGE, Calif.--(BUSINESS WIRE)--Aug. 28, 1996--Alliance Imaging Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SCAN) on Wednesday announced that previously reported discussions regarding a purchase of Alliance by U.S. Diagnostic Labs Inc. (NASDAQ NM:USDL USDL United States Department of Labor ) have been terminated. Discussions for a possible transaction were previously announced on Aug. 16, 1996, due to rumors in the marketplace. Following continued discussions, Alliance was informed by U.S. Diagnostic that the exchange ratio initially discussed by the parties could not be justified by U.S. Diagnostic and, further, that U.S. Diagnostic had been unsuccessful in reaching an agreement with certain of Alliance's lenders. As previously announced, an acceptable agreement with the holders of Alliance's senior notes and senior subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before was a condition to any transaction going forward. Richard N. Zehner, chairman and chief executive officer of Alliance, said: "While we believe that this transaction would have been mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" to the shareholders of Alliance and U.S. Diagnostic, we remain committed to our growth strategy and achieving the best possible value for our shareholders. Given this development, that means we will continue to operate Alliance as an independent company. "We look forward to continuing the progress we have made in establishing Alliance as a leader in the MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. service industry and reporting profitable results for our shareholders. "We also look forward to identifying and pursuing other projects, including possible joint ventures with U.S. Diagnostic, where the economics make sense for both of us." Alliance Imaging is a leading provider of comprehensive diagnostic imaging services to hospitals and other healthcare providers. Services are provided on either a mobile, shared-user basis or on a full-time, single-user basis. The company currently operates 87 magnetic resonance imaging magnetic resonance imaging (MRI), noninvasive diagnostic technique that uses nuclear magnetic resonance to produce cross-sectional images of organs and other internal body structures. and eight computed tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. systems nationwide. CONTACT: Alliance Imaging Inc., Orange Terrence M. White, 714/921-5656 or Allen & Caron Inc/South Coast Communications Marty Tullio (investors) Owen Daley (media) 714/252-8440 |
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