(Adds background, details on previous offer)
Dec 20 (Reuters) - Australia's MYOB Group MYO.AX on Thursday said it could not recommend a downwardly revised offer by KKR & Co KKR.N after the U.S. buyout giant lowered its bid to take full control of the accounting software firm.
MYOB said its board had informed KKR that it was not in a position to recommend the new offer which values the company at $1.43 billion, however it "remains in discussions with KKR regarding its proposal".
The U.S. firm, which already owns 19.9 percent of MYOB, revised its offer down by about 10 percent to A$3.40 per share from $3.77, following completion of due diligence and finalisation of debt funding commitments.
Melbourne-based MYOB last month said it would grant due diligence after KKR had sweetened its offer by 2 percent. MYOB was once the dominant provider of accounting software to small and medium-sized businesses in Australia, it has in recent years struggled to compete for market share with cloud-based administrative software company Xero Ltd XRO.AX .
Xero, based in Wellington, New Zealand, has overseas offices, including those in London, San Francisco and Denver, while MYOB operates only in Australia and New Zealand.
($1 = 1.4067 Australian dollars)