Giovanni di Stefano, a former director of Scottish club Dundee, was reportedly keen to invest £750,000 in the Dublin side with a view to a potential takeover.
Talks had been due to take place this week, but after intense media scrutiny, club chiefs have called them off.
Shelbourne chief executive Ollie Byrne said in open letter to di Stefano on the club’s website: “To be truthful I was astonished that you chose to release details of your interest to the media in advance of any meeting taking place with Shelbourne FC.
“Regrettably I do not believe that it is now possible for me to take your expression of interest any further.”
Byrne added separately: “The media response to the letter from Mr di Stefano has prompted significant interest in the club. Many suggestions of involvement in the club from local interests have flowed through in the past few days and Shelbourne FC is deeply grateful for that interest. All these approaches will be pursued.”
