April 4 (Bloomberg) -- Allegheny Technologies Inc. call- options trading jumped to a record and the shares rose to the highest in five weeks on speculation the specialty-metals producer is a takeover target.

Allegheny rose $8.95, or 12 percent, to $84 in New York Stock Exchange composite trading. The shares have fallen 24 percent in the past year. Call trading climbed to more than 31,360 contracts, or 14 times the average during the preceding 20 days. Bullish bets outnumbered bearish ones, or puts, by 3- to-1.

``It's been up today on takeover speculation,'' said Marc Weinberger, head trader at W. Quillen Securities in New York. ``One possible suitor that's been mentioned is U.S. Steel. It makes sense strategically, and it could be a good fit.''

Allegheny is benefiting from higher demand for specialty metals such as titanium, used in jet engines, as airplanes require more durable materials. The Pittsburgh-based company is spending about $925 million through 2009 to boost production, including $38 million to expand titanium-sponge output at a plant in Oregon.

Allegheny shares closed at the highest since Feb. 28.

The price of today's most-active options, which give the right to buy the stock for $85 before this month's options expire on April 18, rose sixfold to $3.50. April $90 calls, the second-most active, rose 12-fold to $1.85.

``The market is telling us that there's a ravenous hunger for upside exposure to Allegheny shares, and the catalyst being put forward is that the company may be bought,'' said Rebecca Engmann Darst, an analyst at Greenwich, Connecticut-based Interactive Brokers Group Inc.

Calls give the right to buy a security for a certain amount, known as the strike price, by a given date. Puts convey the right to sell.

U.S. Steel Corp. spokesman John Armstrong and Allegheny spokesman Dan Greenfield didn't immediately return phone messages seeking comment.

To contact the reporters on this story: Dale Crofts in Chicago at dcrofts@bloomberg.net; Jeff Kearns in New York at jkearns3@bloomberg.net.

Last Updated: April 4, 2008 17:10 EDT