It wasn't clear what weapons the man might have or what he wanted, police spokesman Guenther Beck said. The incident started shortly before 9 am (1230 IST) today and Beck said police were in contact with the man by telephone.
Beck said there "several" hostages but he couldn't be specific. There was no immediate word on who the hostage-taker was.
The hostage-taking happened several hours before Chancellor Angela Merkel was due in the city for a late afternoon rally. Germany holds national elections on September 22, and Bavaria votes in a state election a week earlier.
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