Oct. 10 (Bloomberg) -- Lexmark International Inc. climbed 6.7 percent, the most since January 2006, and options to buy the stock surged on speculation the second-biggest U.S. printer maker will be bought.

``There's takeover chatter,'' said Jay Shartsis, an options strategist at R.F. Lafferty & Co. in New York. ``Today is an impressive day for this stock.''

Lexmark climbed $2.74 to $43.80 in New York Stock Exchange composite trading. The price of the most actively traded options, October and November $45 calls, rose sixfold and threefold, respectively. The total number of calls traded was more than 19 times the average during the prior 20 days. Calls convey the right to buy shares for a set ``strike price'' by a given date.

``There's definitely a rumor making the rounds,'' said Frederic Ruffy, an options analyst at Redwood City, California- based Optionetics.com, a provider of investor education services. ``Players in the options market see it as credible, because there's heavy trading in the $45 strike price. The industry has been consolidating, so this one might have some merit.''

Gateway

Other computer companies have been acquired in the past two months. On Aug. 27, Acer Inc. said it will buy Gateway Inc. for $710 million to become the third-biggest personal computer maker in the world. On Oct. 8, Gateway Inc. said it agreed to buy the company that owns most of Europe's Packard Bell BV.

``As a matter of policy, we don't comment on rumors or speculation in the market,'' said Tim Fitzpatrick, a spokesman for Lexington, Kentucky-based Lexmark.

Speculation included a potential takeover by Dell Inc., the world's second-largest maker of personal computers, according to Michael McCarty, an options trader at Meridian Equity Partners Inc.

``It is a perennial Dell takeover rumor,'' McCarty said. ``That's the principal reason for the stock move today.''

Dell shares added 13 cents to $28.04. Dell spokesman David Frink said the company wouldn't comment on ``rumors or speculation.''

To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.

Last Updated: October 10, 2007 17:32 EDT