Liberal Democrats agreed to suspend talks with Labour over the future government in the Welsh Assembly.
Instead, the smallest minority party will start exclusive talks with Plaid Cymru and the Conservatives on a 'triple crown' alliance, which would dump Labour, the largest group, into opposition.
The effect, if negotiations are successful, would be to install Plaid leader Ieuan Wyn Jones as first minster in a coalition government within a fortnight.
UPDATE: First minister Rhodri Morgan said: "We aren't conceding defeat because there are many twists and turns in the tale yet to be played out. We will see what happens over the next 10-13 days."

welshspin wrote...
Dear God, it's beginning to resemmble Denbighshire on a national scale!
That's a frightening prospect ...
Posted by: welshspin | May 18, 2007 12:40 AM