Onex Corporation (TSX:OCX) has called off its auction of Carestream Health, Inc. after failing to find a buyer for the price of $3.5 billion, three people familiar with the matter said. Bain Capital LLC dropped out of the auction the week ending May 17, 2013 and Thomas H. Lee Partners LP exited the process earlier, people said. Onex is now considering other options for Carestream, with a dividend recapitalization the most likely outcome, one of the people said. Under that scenario, Carestream would borrow money to pay Onex, a special dividend. Representatives of Carestream and Onex did not immediately respond to requests for comment, while Bain and Thomas H. Lee Partners declined to comment.

Onex Corporation announced unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the period, the company reported revenues were $7,212 million compared to $6,817 million for the same period a year ago. Loss before income taxes was $237 million compared to income before income taxes of $217 million for the same period a year ago. Net loss was $271 million compared to net income of $173 million for the same period a year ago. Net loss attributable to equity holders of the company was $308 million or $2.71 per basic and diluted share compared to net income attributable to equity holders of the company of $58 million or $0.51 per basic and diluted share for the same period a year ago. Cash used in operating activities was $68 million compared to cash from operating activities of $263 million for the same period a year ago. Purchase of property, plant and equipment was $195 million compared to $166 million for the same period a year ago.

Onex Corporation (TSX:OCX) is looking for acquisitions in Europe. Gerald Schwartz, Chairman and Chief Executive Officer of Onex said, "As we build value at our existing businesses, we also continue to look for new acquisition opportunities. Earlier this week, we announced the acquisition of Nielsen Expositions from its parent company". Gerald Schwartz also added, "Corporate carve-outs are probably our favourite type of transaction, and we believe that this business will be in a stronger position to grow as a stand-alone company under our ownership. The opportunities in Europe come as North American deals have been hard to come by early this year."