I believe Ozzy Osbourne announced a couple of farewell shows in 1992 and asked Black Sabbath including Dio to be his support band. Dio said no way and Rob Halford did the shows instead. Might be wrong though.
You are correct, that is what happened. Dio felt he was being set up for a reunion, so he walked out. He was right, because they played a set with Halford and then finished by performing with Osbourne.
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