REFILE-Daiwa CEO says seeks more foreign M&A partners

(Fixes headline glitch)

By Junko Fujita

TOKYO, May 12 (Reuters) - Daiwa Securities Group Inc (8601.T: Quote, Profile, Research, Stock Buzz), Japan's second-largest brokerage, is seeking more foreign partners for its merger advisory businesses besides its current ally Sagent of the United States.

"Mergers and acquisitions are international. Japanese companies are looking overseas and vice versa," Daiwa Securities Chief Executive Officer Shigeharu Suzuki told Reuters. "We want to tie up with someone who has overseas clients."

Daiwa, which has an investment banking joint venture with Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz), formed an alliance with Sagent Advisors Inc in April last year to boost its M&A business. It also bought a 20 percent stake in New York-based Sagent for $52 million.

Daiwa Securities SMBC Co, the venture with the Japanese bank, was ranked the fourth-largest merger advisor for Japanese companies in the three months to March 31, up from 11th in the same period a year ago.

"If we form more alliances similar to this, they would have to involve capital injections. Otherwise both sides would not get serious about the partnership," said Suzuki.

Daiwa and Sagent may invest in a different firm for a new partnership, Suzuki said.

The two firms combined have more than 10 transactions in the pipeline, Suzuki said.