MYOB says not in a position to recommend KKR's lower offer

(Adds background, details on previous offer)

Dec 20 (Reuters) - Australia's MYOB Group on Thursday said it could not recommend a downwardly revised offer by KKR & Co 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.

Although 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.

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) (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sam Holmes and Stephen Coates)