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TTP statement says they will punish the murtad(apostate) pakistan army for killing their chief.
Peace talks cancelled.
Mehsud became leader of the Pakistani Taliban in 2009, aged 30, after his predecessor died in a US drone strike.
Mehsud had a $5m FBI bounty on his head and was thought to be responsible for the deaths of thousands of people.
Several previous claims of his death, made by US and Pakistani intelligence sources, have proven untrue.