Nope. They left the offer to Witherspoon on the table even after Morgan re-signed. In fact, they even upped the offer a bit when he was being courted by the Rams, but were not willing to overspend for him.
pretty much that.
IIRC back then the front office basically had to decide whether to extend dan morgan or witherspoon - they decided to re-sign morgan. thus, spoon then moved on and signed a big deal with the rams, who wanted him to start at the MLB spot; that didn't work out, so he was shipped out of town a couple of seasons later...
So despite the misinformed opinion some have, it was never an either/or situation between them.