US fleet card giant Fleetcor has been rebuffed by Cabcharge Australia after signalling interest in buying its core taxi payments business.
Cabcharge says it received a letter from Fleetcor about investigating a deal to buy its payments business, but wasn't interested in opening talks.
"The letter of interest did not contain any specific financial offer and, having considered the options available to Cabcharge, the board chose not to pursue FleetCor's approach," Cabcharge said in a statement on Tuesday.
"There has been no further approach."
The Australian Financial Review reported that Fleetcor made the approach about a potential $500 million deal some time in the past two months.
Cabcharge's taxi payments business has come under pressure from the introduction of caps on surcharges for passengers using credit or debit cards to pay their fares.
The company's profit dropped by more than seven per cent in 2013/14 after the Victorian government introduced a five per cent cap on the card service fees in February.
NSW will follow suit in December, with Cabcharge estimating the move will cost it about $14 million.
Shares in Cabcharge were five cents higher at $4.70 at the close on Tuesday.
Share
