Alinghi and Oracle fail to break deadlock

America's Cup holders Alinghi and challengers BMW Oracle remained in dispute over the rules of the 33rd edition of the event after a BMW-imposed deadline for Alinghi to back down expired on Monday.

The commodore of the Golden Gate Yacht Club (GGYC), under whose colours BMW sail, wrote to his counterpart at Alinghi's club, the Societe Nautique de Geneve (SNG), on Sunday offering to rescind a legal challenge to the validity of Alinghi's sails if the Swiss team signed an agreement by 19.00 (Malta time) on Monday.

According to the letter, published by Oracle, the deal "would settle all the remaining issues" before a head-to-head showdown for the Cup in Valencia, Spain.

"It isn't possible to negotiate under the threat of a lawsuit," an SNG source, who asked not to be named, said yesterday.

The club were still prepared to negotiate as long as the GGYC withdrew its lawsuit, the source said, adding that SNG looked forward to racing on February 8.

BMW have asked the New York Supreme Court to rule on the validity of the sails on Alinghi's giant catamaran, believing they contravene nationality rules under the Deed of Gift document which governs the event.

The teams have blamed each other for the break-up of talks in Singapore aimed at ending their long-running dispute.