Murdoch paper admits phone hacking as victim rejects payout

Media magnate Rupert Murdoch's flagship British Sunday tabloid newspaper officially apologized Sunday for hacking into voice mails, in a scandal which has affected celebrities, politicians and royal household staff. The weekly newspaper offered compensation and "apologized unreservedly" for the "unacceptable" hacking. But at least one of the victims is rejecting the deal, her lawyer told CNN Sunday. Nicola Phillips, who works for celebrity publicist Max Clifford, has refused a payout offer, lawyer Mark Lewis said. "She ... needs a declaration of the truth," Lewis told CNN. "If I said I will give you 50,000 pounds ($82,000), but you have no way of knowing how many times your phone was hacked, you have no way of knowing how much damage was done." He declined to say how much she had been offered, citing the terms of a letter Phillips received on Friday from News International, the News of the World's parent company. London police have arrested an editor and a reporter on "on suspicion of unlawfully intercepting mobile phone voice mail messages."