While not formally rejected yet, it was decided not to progress with Morgan's offer, leaving the way clear for Shinawara's £65m investment.
"The board's response doesn't seem to make sense," said a spokesman for the self-made property magnate.
"Mr Morgan's proposal is to underwrite the investment of £73million into LFC, not to buy the club.
"Under his proposal, the investment would be open to all shareholders, including the board.
"In addition, the ordinary supporters would, for the first time, be able to buy a share in the club.
"Mr Morgan's offer merely underwrites the proposal, thereby guaranteeing that £73million will be made available to the club.
"What matters to Liverpool Football Club is how much money they have available, as soon as possible, to strengthen their squad and fund the stadium."
What do you think about the bids?