Murdoch met with the Dowler family in July and personally apologised for the phone hacking.
As a gesture intended to atone for the hacking of the phone of murdered British teenager Milly Dowler, media baron Rupert Murdoch has reportedly offered to pay her family 2 million pounds in settlement, an issue that led to the closure of the News of the World tabloid.
The issue that focussed public ire against Murdoch's media operations in Britain.
It was the report that Dowler's phone being tapped that triggered the series of events that led to Murdoch and his son, James, being summoned before the MPs, withdrawal of the BSkyB takeover bid and a series of public inquiries into the unethical news gathering practices at News International.
Murdoch met the Dowler family in July in a bid to assuage public sentiments at the height of the phone-hacking scandal, but has now reportedly decided to take it further and pay the family 2 million pounds.
Another 1 million pounds would be donated by News International to charity.
Reports Monday said that the figures for the Dowler family are far larger than other phone-hacking settlements reached, reflecting the fact that the phone-hacking case affected a family who were victims of crime.
Dowler, 13, went missing in March 2002 and was later found murdered.
Private investigator Glem Mulcaire allegedly hacked into her phone, accessed her voice mails for messages and information that could be used by News of the World in news stories.
Messages left for her were deleted to make room for more recordings, which gave the family false hope that she was still alive, because messages were disappearing.
Murdoch met with the Dowler family in July and personally apologised for the phone hacking.
During the meeting, he repeatedly told the family he was "very, very sorry"
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