Sudan accuses South Sudan of backing armed rebel groups Earlier Friday, Mr Saad had said the military blocked and defeated rebels who were hoping to capture Talodi, after the insurgents reported seizing two Sudanese army outposts several kilometres from the town. The army spokesman said the Southern-backed rebel bombardment of Talodi began at 7am Friday, killing women and children. "SAF (Sudanese Armed Forces) troops reacted to this and the battle continued until 6pm," he said. We succeeded in defeating the rebels, with heavy losses among them. He said the rebels "ran away" but were building up forces elsewhere because their leaders "and South Sudan want to continue their attack on Talodi." Mr Lodi, of the SPLM-N, said Sudanese troops were backed by air support. "We are using normal artillery that we seized from them, mortars, and tanks also," he said, calling the allegations of Southern support "false." "Time will show who won the battle in Talodi," he said, adding that the rebels had not yet taken the town. "Of course, there will be casualties," he added. Talodi, South Kordofan's third-largest town, is about 30 miles from the disputed border with South Sudan. It is near the intersection of a road from the state capital Kadugli and another leading to South Sudan. Ethnic minority insurgents from the SPLM-N - who have been battling Khartoum since June - fought alongside the former rebels now ruling South Sudan, which became independent in July last year after an overwhelming vote for secession following Africa's longest war. Border tensions have mounted since then and Sudan has previously accused the South of supporting the SPLM-N, a charge denied by the government in Juba. Weekend crisis talks led by the African Union were expected between senior envoys of both nations in Addis Ababa, after the fighting sparked fears of a wider war. Analysts said there are elements in Khartoum, as well as the South, opposed to recent moves towards warmer relations between the two countries and suggested the flare-up over Heglig was an effort to sabotage a rapprochement. The two sides have also been unable to resolve a dispute over oil fees which led the South in January to shut crude production after Khartoum began seizing Southern oil in lieu of compensation.