Britain's GBR America's Cup challenge team seem to have lost HSBC as title sponsor.

Last Friday the team members were told in a confidential update that a principal commercial backer was on the brink of signing up, yet a senior figure at the bank said: "As we stand today, we will not be sponsoring the GBR Challenge."

HSBC's move counts as a significant setback for GBR. Contact has been maintained with two would-be other sponsors, thought to be Barclays and HP.

Meanwhile, GBR Challenge design team members and engineers from the Wolfson Unit, Southampton, successfully completed phase three of tank testing for upgrading GBR 70 and GBR 78 to the America's Cup Class Rule at the QinetiQ Marine Research Facility, Gosport.

"With three phases of tank testing behind us", the Team said. "the focus will now move to the build shed here at the GBR Challenge base in Cowes where GBR 70 &78 have been prepared for modifications".