Brian Kennedy is no longer in the running to buy Rangers and has urged the club's administrators to opt for a rival bid instead, a representative for the Sale Sharks owner has said.
Press Association Sport understands Kennedy was told by Duff and Phelps that his takeover bid was too low.
He appears unlikely to table an improved proposal after saying he hopes administrators go with another bid tabled by former Ibrox director Paul Murray and his Blue Knights consortium.
Kennedy was one of a number of parties who had expressed an interest in taking over the ailing Glasgow giants, who were forced to call in the administrators on February 14.
A spokesperson for Kennedy said he was "disappointed but not surprised by the outcome".
Kennedy added: "I was only going to get involved for the good of the club.
"I am glad the process is now moving on and I hope the administrators now go with the Paul Murray/Blue Knights bid as they have the best interests of the club and the supporters at heart."