Netanyahu says he can work for peace with Obama

Jerusalem (AP): Prime Minister-designate Benjamin Netanyahu of the hardline Likud Party sought to calm concerns his incoming government will freeze peace efforts and upset relations with Washington, saying he can work with President Barack Obama to promote peace in the region.

"I intend and expect to cooperate with the Obama administration and to try to advance the common goals of peace, security and prosperity for us and our neighbors," Netanyahu told reporters, ahead of a meeting with visiting US Senator Joseph Lieberman. "I hope to do so in a unity government."

Netanyahu's comments came ahead of a crucial meeting with his chief rival, Tzipi Livni, in which he aimed to lure her into an alliance.

The meeting was their first since the deadlocked February 10 election. Bringing in the moderate Livni would reduce international pressure on Israel and provide more stability to Netanyahu's government. If he fails, he will be forced to team up with ultra-nationalists on his right in a narrow coalition that could prove unstable, halt peace talks with Palestinians and harm Israel's ties with the new US administration.

The two leaders met for more than two hours, and appeared before the cameras separately shortly before midnight.

Netanyahu said he and Livni found many points of agreement and their disagreement could be "overcome with good will." He did not divulge any details from the meeting.