Sandler O'Neill stands pat, not seeking deals

By Joseph A. Giannone

NEW YORK (Reuters) - Sandler O'Neill & Partners, an investment bank focused on financial services companies, is no longer pursuing a major deal such as a merger as it sees plenty of growth opportunities as a closely held partnership, senior managing principal James "Jimmy" Dunne said on Monday.

In April, Dunne told Reuters he was considering a "transformational" deal that would help the New York firm expand, without selling stock in a public offering.

But a summer of turmoil in financial markets has altered the playing field and convinced Sandler partners they are well positioned to grow without major changes, Dunne told the Reuters Finance Summit in New York.

"This year for us will be a very, very good year. That's not unusual when Wall Street is having difficulty," Dunne said. "I'm less inclined to do something transformational now than I was then."

Sandler O'Neill, formed in 1988, has rebounded since the September 11 attacks on its World Trade Center headquarters killed 66 of 171 employees. A number of small investment banks have gone public in the past few years, but Dunne said Sandler has sufficient capital to support its advisory and trading businesses without going public.

"I don't see how that would serve our clients," he said.

Over the years the firm has held talks with firms proposing alliances and buying stakes, he said.

"People have approached us. I have talked to them. I have considered it, but there's nothing that really interested me," he said.  Continued...