In October, Westpac revealed that it was is in preliminary discussions to buy 100% of Tyro’s share capital. However, in a stock exchange filing, the bank now says that, after carrying out due diligence, it has decided that "submitting an offer is not in the best interests of Westpac shareholders at this time". Founded in 2003, Tyro is one of Australia’ largest Eftpos providers. Westpac had been interested in the firm to boost its small business offering and strengthen its position in merchant acquiring. Meanwhile, the Tyro board has rejected a second, improved takeover bid from the Potentia Capital consortium. The latest offer was 26% higher than a previous bid, at A$1.60 a share, giving Tyro an enterprise value of A$875 million. In a statement, Tyro says the board has "unanimously determined that the Revised Indicative Proposal continues to significantly undervalue Tyro and, as such, is not in the best interests of shareholders as a whole". However, according to the Australian Financial Review, Tyro’s biggest shareholder, Grok Ventures, has indicated that it is willing to sell and Potentia could now take its offer directly to shareholders.