An armed man was holding several people hostage today in the town hall at Almelo, in the eastern Netherlands, local news agencies reported.

Dutch media reported that the man was the manager of a restaurant adjoining the town hall, who had lost his licence in a conflict with the municipality.

The man had set fire to his restaurant and then his car, which was parked outside the building, and slipped inside in the ensuring commotion, witnesses were quoted as saying.

Police officers were at the scene and trying to make contact with the man and to establish his identity, police spokeswoman Elly Sjauw said. They also were unsure how many hostages were being held, she said.

Around 50 people were seen leaving the building under police escort through a side exit at 1200 GMT.

Almelo is a town of about 70,000 people, about 100 miles east of Amsterdam.

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