Euskaltel back in limbo as talks with F1 star Alonso fail

Negotiations between Euskaltel and Fernando Alonso over the Formula 1 driver's bid to assume control of the Spanish cycling team have ended without success, Euskaltel confirmed in a statement Monday.

The Basque outfit had reached an in-principle agreement with Alonso last month but has now had to deliver to its fans the "sad news" that, in the absence of another interested party, the team will cease to exist at the end of the current season.

"Euskaltel is regrettably obliged to again start the process of an ordered and responsible shutting down of the project," the communiqué reads. "We would like to explain the details of the negotiations, because we have done everything from our side, but it is not possible because we must respect confidentiality."

Alonso announced on August 31 his intention to acquire Euskaltel's UCI Pro License after the team had announced during the Tour de France that due to the withdrawal of sponsorship by the Basque institutions in the face of the recession, it would not be economically viable to continue past this season.

At the time, Alonso said: "There has been a lot of work done this week, and now everything is more or less complete. All the decisions over the work of the team have been taken and now we have to find managers and sporting directors. We need to look for sponsors and do a lot of things in the next few months because the first race is in Australia in January."