Portsmouth chairman Sacha Gaydamak dropped all takeover talks with Ramon Vega out of frustration with the former Tottenham defender's behaviour.
The Sun says Vega was heading a Swiss-based consortium bidding to buy the Fratton Park club.
But Pompey owner Gaydamak has angrily called a halt to negotiations after failing to get straight answers from Vega.
A club source said: "Vega repeatedly ignored the club's requests to show where the money for the takeover was coming from.
"He also refused to reveal the identity of the investors behind the consortium he was supposed to be representing. The suspicion was that he planned to pay for the takeover by cashing in on the club's assets - the players.
"Gaydamak made it clear that he was not prepared to do business on that basis."