OzForex has terminated talks which would have seen Western Union take over the Australian foreign exchange transfer group.
A short time ago, OzForex shares were down 37% to $1.92.
The indicative proposal from Western Union was for $3.50 to $3.70 cash for each OzForex share.
Last November, the company gave Western Union an exclusive due diligence period.
However, OzForex says Western Union has not submitted a binding proposal.
In a trading update, OzForex says there was a reduced level of trading activity from both new and existing active clients in the December quarter.
Fee and commission income increased 9% but was below expectations.
Part of the reason was less advertising ahead of the rebranding of OzForex to OFX, a move reflecting its international business.
The company reduced its guidance for underlying EBTDA (earnings before tax, depreciation and amortisation) for the full year to between $35 million and $37 million.
Revenue was still on target to double from 2015 to more than $200 million in 2019.