Murdoch to pay $3.2M to slain girl's kin

LONDON -- Rupert Murdoch's company said Friday it has agreed to pay $3.2 million to the family of a murdered schoolgirl whose phone was hacked by the tabloid News of the World.

News International and the family of Milly Dowler confirmed the settlement in a joint statement. It said Murdoch also will donate $1.6 million to charities chosen by the Dowler family, including youth and cancer research groups.

Murdoch shut down the 168- year-old News of the World in July after word emerged that its reporters had intercepted the telephone voice-mail messages of the 13-year-old, hampering a police search when she was still missing. Dowler disappeared in 2002 and was later found murdered.

The revelations touched off a storm of public outrage that rocked Murdoch's media empire and ricocheted through Britain's political, police and media establishments. The hacking was previously thought to be limited to celebrities, athletes, royalty and other public figures.

"Nothing that has been agreed will ever bring back Milly," the Dowlers said in the statement. "The only way that a fitting tribute could be agreed was to ensure that a very substantial donation to charity was made in Milly's memory. We hope . . . that some good can come from this."

Murdoch met with the Dowlers in July to personally apologize, saying he was "appalled" to have discovered what happened.