In a dramatic move, Israeli Prime Minister Benjamin Netanyahu on Tuesday cancelled early general elections after clinching a surprise deal with the main opposition party to form the largest-ever coalition government in the country. The deal to include the centrist Kadima party was announced a day after Netanyahu called for snap polls in September this year.
In a setback to the fragile Middle East peace process, Israel's general elections threw up an inconclusive mandate on Wednesday, with both the centrists and the rightists claiming victory and a hawkish anti-Arab leader emerging as the possible kingmaker.
Livni, who as Israel's foreign minister heads the US-backed peace talks with Palestinians, won the ruling Kadima party primary late Wednesday night to succeed Ehud Olmert, who was facing public uproar over graft charges.
Former Israeli prime minister Ariel Sharon died on Saturday at a hospital near Tel Aviv after being in a comatose state for the past eight years following a stroke. He was 85.
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