Telomeres, the ends of eukaryotic chromosomes, are critical for maintaining chromosome stability and genome integrity (
2,
8,
60). Telomeres are composed of particular DNA sequences which are rich in TG and arranged in species-specific repeated motifs. Telomeres are capped by proteins that bind to these repeating DNA sequences (
6,
20). This apparently serves at least two distinct purposes. First, some of these telomeric proteins presumably form complexes that regulate telomerase activity and, hence, the length of telomeric tracts (
31,
43). Some telomeric proteins have also been implicated in the physical protection of chromosome ends (
38), in preventing recombinational events that would otherwise frequently occur between repeating telomeric sequences (
33,
34,
53), and in keeping off DNA repair enzymes (
14). Indeed, telomeres represent naturally occurring DNA double-strand breaks that, contrary to those resulting from accidental damage, do not need to (and must not) be repaired. Surprisingly, however, yeast Ku proteins, as well as proteins of the Mre11-Rad50-Xrs2 complex, which have been implicated in DNA repair by nonhomologous end joining have also been implicated in telomere maintenance (
3,
4,
7,
11,
12,
27,
28,
39,
44,
46,
47). Moreover, yKu70 and yKu80 have been found to localize at the telomeres (
18,
37).
The repeating TG-rich telomeric DNA sequences are mostly double stranded. However, during S phase only, telomeres display a short (ca. 35- to 50-nucleotide) single-stranded DNA extension that marks the very end of the telomere (
57,
58). Single-stranded telomeric DNA is thought to represent the site of anchoring of telomerase, which is composed of the evolutionary conserved Est2 reverse transcriptase enzyme and of the
TLC1 RNA template (
31,
42). However, recent experiments suggest that telomerase-dependent elongation of de novo ends does not appear to involve single strandedness and does not require significant degradation prior to addition of newly synthesized telomeric DNA (
9). Est1 and Est3 represent two subunits of the telomerase complex (
25,
29,
55), which although not required for in vitro telomerase catalytic activity (
32), are nevertheless stable components of the enzyme and regulate its activity in vivo through physical association with Est2 and
TLC1 (
25,
61).
Cdc13 was the first identified single-strand DNA-binding telomeric protein in
Saccharomyces cerevisiae and, consequently, its status as a candidate for most of telomeric functions has become prominent (
5,
14,
30,
45). The isolation of the
cdc13-2/est4-1 allele, which confers a strong deficit in telomerase activity (
29), as well as the recent finding that a fusion protein made of Cdc13 plus Est1 could bypass telomerase-defective mutations in either protein, strongly suggests that interactions between Cdc13 and Est1 represent the mechanism by which a number of regulators can control telomerase recruitment (
10). Indeed, physical association between Cdc13 and Est1 has been revealed recently (
48). Cdc13 has also been shown to bind Pol1 in vivo, and it has been proposed that Cdc13 might coordinate regulation at the telomere ends of G-strand lengthening by telomerase, via Est1, and C-strand resynthesis by polymerase α (
48). In addition, the observation that the temperature-sensitive
cdc13-1 allele displays abnormal accumulation of single-stranded DNA specifically at telomeric regions of chromosomes argued that Cdc13 might be a major telomeric capping protein (
14). It has also been observed that when Cdc13 was defective, in
cdc13-1 cells, the absence of either yKu70 or yKu80, which was otherwise dispensable, impaired growth (
44,
46). The yKu proteins, which bind to double-stranded telomeric DNA, have been proposed to be involved in establishing the proper terminal DNA structure of chromosomes in cooperation with telomerase (
18,
46). In addition to its nonessential function in the recruitment of telomerase at telomere ends (
45), Cdc13 has an essential function that has not yet been clearly defined.
cdc13-1 mutant cells are temperature sensitive and present a first cell cycle arrest at restrictive temperatures of growth (
14).
In the present study, we have isolated several new mutant alleles of
CDC13 which confer either abnormal telomere elongation or, on the contrary, telomere shortening. Telomere elongation in these novel
cdc13 alleles was found to be more affected by mutations in either
YKU70 or
YKU80 than by mutations in
TEL1 or
RAD50, therefore implicating the yeast Ku proteins in the telomerase-loading function of Cdc13. This was supported by observing telomere elongation as a direct result of the expression of a Cdc13-yKu70 fusion protein, which is comparable in length to that produced by a Cdc13-Est1 fusion. We also present evidence, based on overexpression of Stn1 or expression of Stn1-Cdc13 fusions, that Stn1, a protein that associates with Cdc13 by two-hybrid interaction (
17), is an inhibitor of telomerase recruitment via Cdc13. We propose that Cdc13 is both a positive and a negative regulator of telomerase recruitment, which establishes differential interactions with other telomeric proteins, and that the balance between these two opposing effects principally relies on interactions with yKu70 or yKu80 and with Stn1.