Vodafone shares hit five-year peak on iPhone rumours

Shares in British mobile phone group Vodafone jumped Thursday to the highest level for about five and a half years on speculation linking it to a European distribution deal for Apple's iPhone.

Vodafone's share price surged as high as 168.70 pence -- the highest since January 11, 2002. It later pulled back to end at 166.20 pence, which marked a gain of 1.47 percent from Wednesday's close.

London's FTSE 100 index, on which Vodafone stock is listed, finished Thursday 0.67 percent higher at 6,571.30 points.

Apple Inc. was set Friday to launch its ground-breaking iPhone in the United States, where it has signed a deal with US telecoms giant ATT.

The iPhone, which will debut in Europe by the end of 2007 and in Asia in 2008, promises all of the newest portable technologies in one pocket-sized personal unit: mobile phone, camera, web browser, music and video player.