The Armed Forces of the Philippines (AFP) estimates that about ten members of the Abu Sayyaf were killed.
This was in clashes with Army troopers in Barangay Ligasan, Patikul, Sulu.
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Earlier reports say, the grandson of ASG leader Radullan Sahiron was critically wounded in the fighting.
About 18 soldiers were wounded.
The all-day battle began at about 9 am on Friday.
Army Spokesperson Colonel Benjamin Jao says, Army Scout Rangers fought with about 120 bandits led by Sahiron.