Andrew Mwangura of the East African Seafarers' Assistance Program said there was an unconfirmed report that three Somali pirates were killed Monday night in a dispute over whether to surrender to U.S. warships that have surrounded the ship.
Pentagon officials later verified the report.
But a spokesman for the pirates insisted there was no truth to the account.
"We didn't dispute over a single thing, let alone have a shootout," pirate spokesman Sugule Ali told the Associated Press by satellite phone.
The 21-person crew aboard the ship includes 17 Ukrainians, three Russians and a Latvian. One of the crewmembers died on Sunday of an apparent heart attack, reported the Associated Press.
The pirates have demanded a $20-million US ransom for the cargo ship Faina and its cargo of 33 Soviet-designed tanks and weapons, which they hijacked on Sept. 25 as it was passing the Gulf of Aden off the Indian Ocean en route to the Kenyan port of Mombasa. The gulf is one of the world's busiest shipping lanes.
The San Diego-based USS guided missile destroyer Howard has been watching the pirate ship for several days and has spoken to the pirates and crew by radio.
On Monday, U.S. naval officials said several other U.S. ships and helicopters had joined the watch, but declined to give details. Russia has also dispatched a warship to the area, but it will take about a week to get there.

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