Thailand Prime Minister Thaksin Shinawatra has scrapped plans for a special lottery to fund his £65m move to buy a 30% stake in Liverpool.
Thaksin was forced into a rethink in the face of growing opposition, and he has admitted the deal is now in doubt.
" At this moment, I am not certain that we can buy it or not," he said.
" Taking money from the poor is not our aim. When we found that it is wrong, I had to put a brake on it. We have to scrap the lottery project."
The plan had not gone down well with critics, who said it would promote gambling and force the poor to part with their money.
A group of leading academics had called for the proposed investment to be declared illegal, claiming that it defied the Thai constitution.
After weeks of bargaining, Thailand´s offer had reportedly been approved by Liverpool´s board.
Thai negotiators said the two sides were undertaking " due diligence" checks of the club´s financial integrity.
I don´t care about losing face
Thailand Prime Minister
Thaksin Shinawatra
Thaksin said on Thursday: " Our financial experts and the legal team are performing the ( due diligence).
" But nothing is certain. If it is affordable to buy we will buy, if not we will not."
Thaksin had originally indicated that he would buy the Liverpool stake with his own money.
But the government later said it would be owned by a new company to be set up under the government´s Sports Authority of Thailand.
A £165m one-off state lottery was to have been used to purchase the stake, with the rest being spent on prizes and administration charges.
But Thaksin said the proposed £15m first prize " has inspired greedy people and would make the poor struggle to buy the lottery".
He added that opposition from his political mentor Chamlong Srimuang had influenced him.
" When he warned me that the lottery is a vice and a sin, I had to listen," said Thaksin.
" I don´t care about losing face. But when I found that it is time to backtrack, I have to do it."
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