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At least 19 people have been killed in the attack on the hotel and the restaurant in Mogadishu, police officials told Reuters. They also confirmed that the siege has officially ended.
The Associate Press, however, reported 31 killed in the overnight siege.
In a separate incident later in the day, at least two soldiers were killed when a roadside bomb, planted by the Islamist militant group al Shabaab, struck a car carrying government troops in Central Shabelle outside of the capital, the military said.
All the gunmen in the Mogadishu siege have been killed, an official told VOA Somali.
The siege lasted 10 hours, and the surrounding area has been cordoned off by the police for investigation, according to local reports.
The gunmen who held people hostage in the restaurant were allegedly dressed in military uniforms.
According to a local journalist covering the attack, two gunmen inside the restaurant are believed to have been killed in the gunfire exchanged between the militants and the security force, as the exchange enters its ninth hour.
Hours after the bombing, firing raged on between the militants and the policemen, local news agencies reported.
Gunmen were holding at least 20 people hostage in a restaurant in Somalia's capital Mogadishu on Thursday, police said, after a suicide bomber rammed a car next door and killed 17 people, mostly women.
The attack has been claimed by militant Islamist group al Shabaab.
Police cordoned off the whole district surrounding Mogadishu's Pizza House, which is adjacent to the Posh Hotel where the suicide bomber attacked first, witnesses said. Posh Hotel is the only venue with a discotheque in the capital.
Other officials said victims inside the hotel had been safely evacuated but that there were likely to be more than nine casualties.
Al Shabaab, which has carried out a campaign of suicide bombings in its bid to topple the Somali government and impose its strict interpretation of Islam, claimed responsibility.
"A mujahid (fighter) with his suicide car bomb martyred himself after he rammed into Posh Hotel, which is a nightclub. The operation goes on," Abdiasis Abu Musab, the group's military spokesman, told Reuters
Since losing large swathes of territory to African Union peacekeepers supporting the government, the group has frequently launched raids and deadly attacks in Mogadishu and other regions controlled by the federal government.
Somalia has been at war since 1991, when clan-based warlords overthrew dictator Siad Barre and then turned on each other.
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