From Sky News:

Mr Sarkozy was having a private conversation with US President Barack Obama when their microphones were accidently left open in Cannes last week.

A Reuters reporter who heard the conversation confirmed that the French President, referring to Benjamin Netanyahu, said: “I cannot stand him. He is a liar.”

Mr Obama is said to have responded: “You’re fed up with him but I have to deal with him every day!”…

Reporters at the G20 summit are said to have agreed not to reveal the overheard conversation, but the story was leaked to a French website and confirmed by the Reuters reporter who was in Cannes.

How did they silence all of the reporters? Apparently only about six were still listening by the time the conversation moved on to the Israeli prime minister. So only a few had to be “convinced” that reporting on a story that could harm the media’s boyfriend (Obama) would be a bad thing. Something tells me it didn’t take much convincing.

Update: Reuters is now reporting the story as fact, too. CBS News says a correspondent has confirmed the exchange as well.