Tannenbaum's father-in-law managed Sharon's farm
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The Israeli prime minister has denied acting improperly to secure the release of a hostage amid reports he had business links with the man's family.
Maariv newspaper said Ariel Sharon had employed the father-in-law of the former hostage, Elhanan Tannenbaum, to manage his farm in the 1970s.
Mr Sharon called the allegation a "wild attack", saying he had not spoken to his former employee for years.
Mr Tannenbaum was freed in a prisoner swap with Islamic militants in January.
Costly exchange
According to Maariv, Mr Sharon hired Shimon Cohen to run his farm after Mr Sharon was appointed Minister of Agriculture in 1977.
Mr Cohen's daughter, Esther, was married to Mr Tannenbaum. The couple have since separated.
Mr Tannenbaum was held prisoner by Hezbollah militants in Lebanon for three years after being captured in dubious circumstances, before being freed earlier this year in a costly prisoner exchange.
Many Israelis questioned why Mr Sharon made such a determined effort to secure the release of Mr Tannenbaum, who has admitted trying to conduct an illicit business deal with Hezbollah.
"It is difficult even today to understand what prompted the prime minister to fight so hard for him," Maariv quoted a military source as saying.
'Wild attack'
Mr Sharon told reporters on Wednesday he did not know Mr Cohen was related to Mr Tannenbaum.
"I didn't know his family ties, I still don't know today how many sons-in-law or daughters-in-law or former sons-in-law he has," he said.
"This is a wild attack of the sort I've never seen before."
Mr Tannenbaum is being investigated on suspicion he disclosed military secrets to Hezbollah during his captivity.