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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Reid says Republicans want shutdown to close clinics 11:23am EDT Wisconsin court race won't be certified without probe 4:48pm EDT With no budget deal, government shutdown looms | 4:22pm EDT Facebook now wants a say in computer hardware 10:24am EDT WRAPUP 1-Japan to stop pumping radioactive water into sea 11:27am EDT Discussed 120 U.S. to reach debt limit by May 16: Geithner 96 Reid says Republicans want shutdown to close clinics 81 Stumbling blocks remain in budget fight Watched NATO air strike hits Libyan rebels Thu, Apr 7 2011 7.4 magnitude quake strikes Japan Thu, Apr 7 2011 Students clash at Madrid rally 9:29am EDT News of the World admits hacking UK celebrity phones Tweet Share this By Jodie Ginsberg and Kate Holton LONDON (Reuters) - Rupert Murdoch's powerful UK news arm reversed course and admitted its role in a long-running phone hacking scandal that had thrown into question the Prime Minister's judgment and threatened... Email Print Related News UK says Murdoch's BSkyB deal unconnected to hacking 11:44am EDT News International names 8 hacking victims 11:32am EDT News Int liability admission under 10 cases-source 10:55am EDT News Intl to admit liability over hacking cases 10:18am EDT Special report: How News Corp got lost in Myspace Thu, Apr 7 2011 Analysis & Opinion Business tycoons express solidarity with Lokpal bill protests The SEC comes round to private markets Related Topics Entertainment » Fashion » People » Stocks Actress Sienna Miller and British politician Tessa Jowell in a combination image. Credit: Reuters/Files By Jodie Ginsberg and Kate Holton LONDON | Fri Apr 8, 2011 1:46pm EDT LONDON (Reuters) - Rupert Murdoch's powerful UK news arm reversed course and admitted its role in a long-running phone hacking scandal that had thrown into question the Prime Minister's judgment and threatened Murdoch's biggest ever deal. News International, parent company of Britain's top-selling News of the World tabloid, had always vigorously denied it knew journalists were hacking the phones of members of the royal family, politicians, celebrities and sports stars, and blamed a handful of "rogue reporters" for the scandal. But in a major turnaround for the company, part of Murdoch's global media empire News Corp, News International said on Friday it would admit liability and pay compensation in eight cases -- although many more believe they were targeted. Those who will receive an "unreserved apology" from the group include actress Sienna Miller and politician Tessa Jowell. The scandal threw into question the judgment of Prime Minister David Cameron, who appointed former News of the World editor Andy Coulson as his head of communications. Coulson ran the paper at the time of the hacking scandal. Although he has always denied knowledge of it, he was forced to resign as Cameron's media manager earlier this year, saying the focus on the hacking scandal was too great a disraction. MAJOR DEAL Analysts said the move was an attempt to draw a line under the case and limit potential financial costs as News Corp tries to push ahead with its planned $14 billion purchase of BSkyB, a deal that has angered other British news operators who fear the group's growing influence over Britain's media. "Following an extensive internal investigation and disclosures through civil legal cases, News International has decided to approach some civil litigants with an unreserved apology and an admission of liability," it said in a statement. "We have also asked our lawyers to establish a compensation scheme with a view to dealing with justifiable claims fairly and efficiently ... We will, however, continue to contest cases that we believe are without merit or where we are not responsible." Lawyer Mark Lewis of Taylor Hampton Solicitors, who represents four individuals currently suing the News of the World including horse jockey Kieren Fallon, said he had yet to receive any settlement offers but welcomed the development. "This is a good stab in the right direction but it is a long way from being over," he told Reuters. "There are people who don't even know at this stage that they are victims." Some media reports suggested the settlement could reach 20 million pounds. "This is being driven by business considerations because clearly the reputational damage is just mounting," media consultant Steve Hewlett told Reuters. "The price that they will pay for admitting liability is way lower than the consequences of fighting on all fronts." A spokesman for Britain's Department of Media said the admission would not affect News Corp's planned takeover of pay-TV operator BSkyB, which is set to be given the green light by Culture Secretary Jeremy Hunt in the next few weeks. 1 2 Next Entertainment Fashion People Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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