Kofi Annan and the African Union head are holding talks with Kenya's rival leaders in a bid to salvage talks aimed at ending the political deadlock. Tanzania's President Jakaya Kikwete, who heads the AU, is trying to persuade President Mwai Kibaki and Raila Odinga to drop their hard-line positions. There are growing fears of renewed violence if the talks fail. Some 1,500 people died in political violence after Mr Odinga said he was robbed of victory in December's polls. Mr Odinga's opposition Orange Democratic Movement had called for fresh protests on Thursday if no deal was reached but cancelled them after Mr Odinga met Mr Annan, who has been leading the talks for more than a month. The former UN secretary general wants the two sides to share power, with Mr Odinga taking the post of prime minister. President Kibaki has agreed to create the post but is opposed to changes to the constitution needed to create the position. Mr Odinga insists on further constitutional changes to legitimise a transitional administration that would oversee reforms before elections. Talks challenged Local media report that professionals, traders and politicians are currently raising funds to arm groups that would protect their communities in the event of violence when the talks collapse. A report by the International Crisis Group think-tank published last month said that both government and opposition officials were mobilising youths to carry out fresh attacks. The post-election violence saw thousands of people targeted because they belonged to ethnic groups seen as either pro-government or pro-opposition. About 600,000 people have fled their homes and some forced back to their ancestral homelands. Addressing reporters after his day-long shuttle diplomacy on Wednesday, President Kikwete, who has extended his trip, expressed hope that Thursday's meetings would break the ice. "We are hopeful that we shall achieve something - both leaders want the crisis to end," he said. Mr Annan, the chief mediator, who also held separate talks with the three leaders, reiterated his position that the differences between both sides were bridgeable. Donor countries have warned they will impose sanctions on any politician seen as blocking a deal - threats condemned by the government. Meanwhile, a politician has lodged a legal challenge to the ongoing talks, saying they were unconstitutional and do not involve all Kenyans. Antony Kirori, who vied for a parliamentary seat and lost to Mr Odinga, says any resolution would alter the country's governance structure. Source: bbc