City are closing in on the £65M signing of Antoine Semenyo this January as clubs prepare for the window to open.
The Ghanaian international has been one of the Premier League's most impressive players this season, bagging nine goals and assisting three goals from his 16 league appearances so far.
Liverpool, Chelsea, Manchester United and Tottenham were all linked with the winger, but it is City who look to have won the race for the winger who is admired by City boss Pep Guardiola.
Speaking on talkSPORT, Pennant has ripped into his old side, who he says have been stupid to not make an offer for the 25-year-old.
"As a Liverpool fan, I'm really disappointed on the back of (Alexander) Isak getting injured, maybe out for the season," Pennant said.
"(Mohamed) Salah being in AFCON, and we already know the relationship with him, is he going to be leaving?
"So, for £65M in this day and age, a player of Antoine Semenyo's quality, you'd say it's kind of a bargain.
"And for them to not be in the conversation or say, 'We're interested as well', and approach Bournemouth on the back of what I've mentioned, is really stupid.
"He could be a player that could replace Salah long term as well. So when Salah does decide to leave, if it's in January or at the end of the season, you've got someone who is Premier League proven, which is absolutely vital.”
Meanwhile, Chelsea made a late proposal to Semenyo last week but have since claimed they walked away and cited depth in attacking areas. Semenyo looks to become a City player over the next few days as the January starts with a bang.