Alinghi reject proposal

Alinghi's yacht club SNG (Societe Nautique de Geneve) had given BMW Oracle until 2200 GMT (2300 CET) on Friday to drop the lawsuit, which argues the Swiss defender chose an illegitimate yacht club to be the lead challenger in two years' time.

SNG did not say what would happen if the deadline passed without a settlement but the ACM (America's Cup Management) organising body has said it may review the feasibility of holding the regatta in Valencia in 2009 if the legal uncertainty drags on.

On Thursday, US syndicate BMW Oracle and its club GGYC (Golden Gate Yacht Club) sent Alinghi a settlement proposal including changes to the umpiring of the regatta. The plan was backed by three of the five challengers who have entered the 33rd America's Cup.

"Together with a majority of the challengers we have delivered a fair, genuine and honourable best last shot," said BMW Oracle chief executive Russell Coutts in a statement. "Alinghi's rejection is a disgrace and ... can only mean they have decided to delay the event.

"What should have been a great chapter in America's Cup history has instead degenerated into a shambles. The protocol Alinghi introduced is the most one-sided in the history of the Cup."

Former Alinghi skipper Coutts was sacked by the team in 2004 after a row with owner Ernesto Bertarelli. ACM said it would stand by the 2200 GMT deadline.

"We have responded to their [BMW Oracle's] letter," said ACM. "The 11pm CET deadline still stands. The only way to guarantee certainty is for them to droptheir lawsuit. We continue to hope for this."

ACM have set out dates for the 33rd America's Cup, with warmup racing next year, the knockout rounds starting in May 2009 and the actual Cup match in July 2009.

However, the legal case has made it almost impossible for syndicates and ACM to get sponsorship for the glittering event, which last time cost most teams more than $60 million apiece to compete in and the organisers about $250 million to stage.