Police said a special forces team closed in on Melhem’s hideout and killed him as he stormed out, shooting at them.
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Samri said Milhem had opened fire at the police with the same gun he used in the attacks in Tel Aviv.
Melhem had been the target of a massive manhunt in Tel Aviv, which then shifted to Israel’s North.
The Palestinian Authority initially declined to list the Melhelm, who is an Israeli citizen, on the list of Palestinians killed by Israeli security forces during the recent wave of terror, the report said.
The unusual slayings a week ago and the fact that the killer remained at large had concerned Israelis, and authorities aimed to deflect public criticism of the investigation. After seeing police barricades ahead, Milhem had reportedly killed Shaaban outside the Mandarin Hotel, before driving the cab himself to Namir Road, where he abandoned it outside a bus stop. Shortly afterward, a taxi driver was found shot dead in another part of town; his auto was found later.
Israeli agencies, including the Shin Bet, analyzed and determined a number of possible hiding places, which then allowed them to find Milhem at a mosque the Arara on Friday.
Milhem was detained by police in 2007 after attacking a soldier with a screwdriver and trying to grab his gun.
Following that shooting spree police launched a manhunt for the perpetrator.
Israeli Arabs, who make up a fifth of the country’s 8.4 million people, enjoy full rights but have long complained of unfair treatment in areas such as housing and employment opportunities.
At the same time, 144 Palestinians have been killed by Israeli forces, most while carrying out attacks.
Internal Security Minister Gilad Erdan thanked Israelis on Twitter for showing “vigilance, patience and understanding for the complexity of the police operation”.
Unrest has since spread throughout the occupied West Bank, including East Jerusalem, and Palestinian communities in Israel.
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Hamas praised Melhelm him as a “hero” and “martyr” and condemned Israeli security forces for killing him.
