Vodafone leads blue-chip rally that recovers losses

MOBILE phone giant Vodafone surged to its highest close since August yesterday as blue-chip stocks powered a rally in the City.

Traders said Vodafone's gains the company ended up 7.5p at 106p came after signs that it could finally prise control of French business Cegetel.

Rival mmO2 also rose, up 2.5p at 50.5p, while BT climbed 4.5p to 183p, and Cable & Wireless ended the day up 2p at 140p.