Livni, who headed Kadima until she lost to Shaul Mofaz in the recent primaries, resigned from the Knesset on Tuesday. "With Mofaz at the helm, it is almost certain we will split from the party," one of the lawmakers said.
Kadima won 28 seats in the last Knesset elections, but a recent poll showed it is expected to win only 11 in the next general elections, meaning 17 of the party's members may find themselves out of the next Knesset.
A controversial law passed by the Knesset allows for seven lawmakers from any one faction to break away from their party.
"Knesset members who supported Livni do not feel comfortable with Mofaz and his associates. Most of them know they will not have a spot in the next Knesset, so it is worthwhile for them to join Livni now," a Kadima member said.
"With her we have no idea what the future holds, but with (Mofaz) we are almost certain to remain without a place in the next Knesset."
According to the MK, if polls show that Livni will win 10 seats in the next elections, "we won't have a problem organizing a splinter group of seven lawmakers. People want to survive. Intense talks have been held since her resignation this morning."
Another Kadima MK said a number of party members turned to Livni even before she resigned and asked that she form a new political movement. "She didn't say she'd do it, but there are those who hope she will," the lawmaker said. "The party is going to be cut in half in the next elections."
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