Kadima acting chairman for the March elections. Kadima won 29 seats, and was asked to form a government by president Moshe Katsav. Olmert formed a coalition with Labor, Shas and Gil, the government being sworn in on 4 May. Yisrael Beiteinu joined the coalition in October 2006, but left again in January 2008 in protest at negotiations with the Palestinian Authority. Olmert resigned as party leader in 2008, resulting in a leadership election, held on 17 September. The vote was won by Tzipi Livni, who beat Shaul Mofaz, Meir Sheetrit and Avi Dichter. Following her victory, Livni failed to form a
2008 Kadima leadership election count turned out much closer, amid very low turnout, with Shaul Mofaz coming within a few hundred votes of winning an unexpected victory over Livni. Supporters of Mofaz called for a recount but Mofaz rejected any legal challenge of the declared result and called Livni to congratulate her on her victory, as did Sheetrit and Dichter. After Mofaz's loss, he announced that he would be taking a break from politics and leaving the government and Knesset. However, he would remain a member of Kadima. Soon after, however, he announced his return and won the 2nd place in Kadima's Knesset list