Malagasy leader given ultimatum

The power struggle has brought weeks of riots, protests and looting

Madagascar's opposition leader has threatened to lead marchers to the presidential palace if President Marc Ravalomanana does not step down.

Andry Rajoelina, who emerged from hiding to address supporters in the capital city, said the president had until Saturday afternoon to resign.

Mutinying army troops have also called on the president to go, leaving the nation close to military intervention.

At least 100 people have died since protests broke out in late January.

The fierce power struggle between Mr Rajoelina - who vanished on 5 March after the security forces tried to arrest him - and President Ravalomanana has brought seven weeks of riots, protests and looting.

The opposition leader - who accuses the president of being a tyrant who misspends public money - has been trying to establish a parallel government by naming an alternative cabinet with himself as president.

The BBC's Jonah Fisher in Antananarivo says the army appears almost as divided as the politicians and there is support within the military for both rivals.

On Saturday, several thousand opposition supporters, clad in orange T-shirts and hats, gathered to hear Mr Rajoelina speak at Antananarivo's 13 May Plaza, which has been epicentre of popular revolts since independence from France in 1960.

Several hundred people gathered at the presidential palace, following a radio appeal on Friday by Mr Ravalomanana to rally to his cause.

On Wednesday, the leader of a widening mutiny within the army ousted the chief of staff and a day later the military police said it would no longer take orders from the government.

Col Noel Rakotonandrasa, spokesman for the dissident troops, urged the president to quit "at once" on Friday. "For sure there will be no resistance," he told the BBC.

Mr Ravalomanana - who has said he wants to stay in power until his mandate runs out in 2011 - vowed to re-establish order but said his life was under threat.

"My assassination would not be in your interest," he said. "The people would suffer, and the international community would not accept it."

Mr Rajoelina is a 34-year-old businessman and former DJ who was sacked last month by the government as mayor of the capital.

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Opposition and pro-government demonstrators holding rival rallies

The US state department warned on Friday the situation in Madagascar had "entered a dangerous phase" and urged the political rivals to "urgently commit" to talks.

For a country with unique rainforest and wildlife - the financial impact of the crisis is already clear, our correspondent says.

A tourist industry worth nearly $400m (