UPDATE 1-Macy's shares rise on takeover talk

(Adds details, comment; updates stock price)

By Doris Frankel

CHICAGO, June 22 (Reuters) - Shares of Macy's Inc. (M.N: Quote, Profile, Research, Stock Buzz) rose as much as 10 percent on Friday and its options volume surged on speculation that the retailer, whose same-store sales have been disappointing in recent months, was ripe for a takeover.

The company's shares jumped to $43.11, before closing up $2.56, or 7 percent, at $41.43 in very active trading on the New York Stock Exchange.

"There is unusual share and option activity in Macy's as rumors circulate that it will be acquired," said William Lefkowitz, an options strategist at brokerage firm vFinance Investments.

Lefkowitz added that a "takeover price as high as $50 has been mentioned. No suitor has been mentioned."

"Shares in Macy's surged by more than 10 percent over lunch time as rumors hit the chat rooms that it was about to feel the heat from the next big LBO buyout," said Andrew Wilkinson, senior market analyst at brokerage firm Interactive Brokers Group.

Macy's spokeswoman Sharon Bateman had no comment on the takeover talk. "It's a long-standing policy that we don't comment on speculation," she said.

The operator of Macy's and Bloomingdale's stores has come under pressure in recent months as sales at stores open at least a year, an important retail measure, have lagged expectations.