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By Yara Bayoumy and Mohammed Ghobari SANAA (Reuters) - Yemen's President Abd-Rabbu Mansour Hadi expressed readiness on Wednesday to accept demands for constitutional change and power sharing with Houthi rebels who took up positions outside his home after defeating his guards in two days of battle. Gulf neighbors denounced what they described as a coup in Yemen, although both the Houthis and some of the president's allies denied that he had been overthrown. In a statement issued in the evening, Hadi said the Shi'ite Muslim group had a right to serve in posts in all state institutions, and a draft constitution that has been a source of disagreement between him and the Houthis was open to amendment. He said the Houthis agreed to withdraw fighters from areas overlooking his palace, his private home and the official residence of the prime minister, as well as a missile base, and had promised to free immediately his chief of staff, whom they have held captive since Saturday.More...