'Devastated' Murdoch could be ousted as head of media empire

Rupert Murdoch's family fear for his health amid rumours he could be ousted as chief executive of his media empire, it was claimed today.

As the 80-year-old tycoon gave evidence to the parliamentary inquiry into phone hacking, speculation grew that the American board of News Corporation - the parent company of News International - is set to replace him as the chief executive officer of his own empire.

Independent board directors and some News Corp executives were said to be worried by the ageing titan's performance during rehearsals for his appearance before the culture select committee today.

According to the Bloomberg business news agency in the US, chief operating officer Chase Carey could take over from Mr Murdoch at the helm of the troubled media giant, leaving Mr Murdoch as just chairman.

Family friends revealed the tycoon is struggling to cope with the avalanche of revelations about phone hacking within his UK newspaper empire.

Vicky Ward, a Vanity Fair contributor, told CNN chat show host Piers Morgan, himself a former News of the World editor, "I just got a call an hour ago and Rupert wanted to tell me personally that he was not okay. His voice has been cracking and the people around him are very concerned, his children are very concerned. This is a man who is more devastated than he has ever been in his entire 80 years.

"Ever since he met with Milly Dowler the murdered girl's parents, he hasn't felt the same," she added.

Bloomberg today said News Corp's directors were unhappy about the "quality and quantity" of information they received about the hacking and bribery scandals that have wiped as much as £5 billion from its stock value.

If true - and there were strong denials from some directors - it would be the biggest scalp so far in a crisis that has claimed the jobs of Met chief Sir Paul Stephenson, counter-terrorism head John Yates, News International chief Rebekah Brooks and Downing Street aide Andy Coulson.

Millions around the world are watching as Mr Murdoch gives evidence to the culture committee this afternoon. David Cameron was among the few politicians missing part of the sessions as he is flying back from his shortened trip to Nigeria for tomorrow's special sitting of the Commons.

Amid criticism of the Prime Minister's handling of the furore, Commons leader Sir George Young insisted: "The Prime Minister has taken a grip."

Mr Carey is one of the few executives at the top of News Corp who has had no connection with the phone hacking scandal. He joined Fox in 1988.

Mr Murdoch's heir apparent, James, was giving evidence alongside him this afternoon and is deeply embroiled in the scandal after paying "hush money" to hacking victims. One theory is that Mr Carey could serve as a transition leader, as he is loyal to the Murdoch family, which controls 39.7 per cent of voting stock.

News Corp's independent directors hold nine of 16 board seats. They are led by Roderick Eddington, the former CEO of British Airways.

Independent director Thomas Perkins denied such a succession had been discussed. "I can assure you, there has been no discussion at the board level in connection with this current scandal or of making any changes," he said.

"The board supports top management totally. The board has been misled, as has top management been misled, by very bad people at a very low level in the organisation."

In another blow to the company, corporate ratings firm Standard & Poor's said it was putting News Corp on its "CreditWatch" list, which could result in a possible credit downgrade.