Liverpool's third-largest shareholder says that he should have bought the club when he had the chance after making a bid two years ago only to back out having seen the full extent of the costs for a new stadium.

Steve Morgan, who made his millions in the building and hotel industries, is about to lose the prize he has wanted for years to the Dubai International Capital group, who are currently engaged in due diligence ahead of an expected £450million bid for the club.

Morgan had reached a provisional agreement with chairman David Moores, before his own due diligence process prompted him to attempt to re-negotiate the share price leading to the collapse of the deal.

"My bid was pre-Istanbul, pre-Rafa Benitez settling into the club and pre-the Sky TV deal," Morgan said in an interview. "If I'd had a crystal ball and seen all these things in advance then maybe I should have done the deal at the time. Hindsight is a wonderful thing."

The club looks set to be taken over by DIC, the investment arm of the Dubai government, representing the ruling Maktoum family.

"It seems that they are well on now with their due diligence, from what I hear I do not see any reason why it should not go through. Probably sometime in mid to late January. That seems to be well on target," Morgan told BBC Radio Five Live.

The takeover will end Morgan's own shareholding because DIC are aiming at a 100 per cent takeover, which will force every shareholder to eventually sell to them.

Morgan, however, has a word of warning for foreign investors.

"I don't really know the answer to why foreign bids for our clubs are more prevalent. Maybe because things look better from the outside looking in, sometimes things look better than they actually are.

"All the clubs in the Premiership cannot be successful, there's winners and losers and we all know who the winners and losers are likely to be. Some people will inevitably get their fingers burnt."

He added: "In my case, I wanted to buy a Premiership football club because I am a lifelong fan. I did see it as a business investment, of course I did, but the attraction for me to buy Liverpool was that I am a die-hard fan.

"What foreign-based buyers see is more long term. They are looking for world brands, with Liverpool, Manchester United that is exactly what they have got.

"But people seem to have got this supposed £450m completely wrong. They will probably pay around £150m, the balance is the debt that is in the club which is around £90m and the building of the new stadium which is anything between £200m to £230m.

"That is where the £450m comes from. But the one thing that the sheikh and Dubai International Capital will not be doing is to write out a cheque for £450m.

"They won't write a cheque for anything like that, they will do the deal on debt, particularly the stadium, and quite rightly so."

He said: "If someone puts that kind of equity in they will fund the stadium on debt. It will all come out in the wash but even some of the existing debt will be financed on debt.

"There will not be this huge wall of cash coming in that everybody seems to think."