Citing law enforcement and corporate sources, the news agency says that the authorities have not substantiated allegations of phone hacking inside the US by News Corp journalists.

The Reuters report, by Mark Hosenball and Georgina Prodhan, says the FBI's investigation concerns possible criminal violations of US foreign corrupt practices act (FCPA).

If it is found to have violated the FCPA, Rupert Murdoch's New York-based company, would face fines of up to $2m (£1.3m) and be barred from US government contracts.

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