Dubai International Capital (DIC), the investment arm of the Gulf Emirate, on Wednesday pulled out of negotiations on a takeover of Liverpool after the club's board asked for more time to examine a rival bid.

In a statement issued in London, DIC said it regretted having to end negotiations on what would have been a 450-million-pound investment in the five-times European champions.

"Having completed due diligence, DIC submitted a comprehensive offer to the Liverpool board," the statement said.

"The offer had been accepted in principle by majority shareholder David Moores. It appears that the Liverpool board and the majority shareholder David Moores were unable to approve these terms in order to allow DIC to make a formal offer to all shareholders."

DIC had planned to pay around 155 million pounds to buy Liverpool as well as taking over around 80 million pounds in debt and financing the construction of a new 60,000-seat stadium in time for the 2009/10 season.

The deal had looked set to be concluded smoothly until Tuesday evening, when the Liverpool board unexpectedly asked for more time to consider a rival bid by American tycoon George Gillett, owner of the Montreal Canadians ice hockey team, which may be more lucrative for the existing shareholders.