* H1 operating profit falls 16 percent
* CEO says bid talks could re-occur in future
* CEO specifies that no bid talks at present
* CEO says company could consider small acquisitions
* Shares up 2.9 percent in early morning trade
(Adds interview with CEO, further detail, updates shares)
By Sudip Kar-Gupta
LONDON, Aug 2 (Reuters) - Tullett Prebon, the world's second-biggest interdealer broker, could attract another bidder although no takeover talks were now under way, Chief Executive Terry Smith told Reuters on Monday.
He also said in an interview he expected revenues to improve in the remainder of the year after Tullett posted a widely expected fall in half-year profits due partly to the departure of brokers to a rival and adverse currency movements.
In May, Tullett said talks with a possible buyer had ended with no offer made for the company. It did not reveal the identity of its potential suitor.
Smith said current regulations sweeping the world's financial sector, such as the U.S. Dodd-Frank Act, meant it was likely that Tullett could attract new suitors.
"I think the Dodd-Frank bill will make the interdealer broker business more attractive than it was before," Smith said.
"Do I think there's the possibility of further talks with people? Yes. It wouldn't surprise us if talks resumed at some point, but there's absolutely nothing going on at present."
INTERIM PROFITS FALL
Tullett's operating profit for the six months ended June 30 fell 15.8 percent from last year to 84.7 million pounds ($132.3 million). The mean estimate for the operating profit stood at 81.5 million pounds, according to Thomson Reuters I/B/E/S.
Tullett shares were up 2.9 percent at 350.1 pence in early morning trade, giving the company a market capitalisation of around 754 million pounds.
Tullett said the recent departure of some of its brokers to rival BGC Partners had contributed to a 7 percent fall in revenue, while its earnings had also been hit by adverse foreign exchange movements.
Last month ICAP, the world's biggest interdealer broker, reported higher quarterly revenues and profits but said trade volumes had slowed down significantly.
Smith said he expected Tullett's second-half profits to be lower than those of the first half but higher than its second-half profit a year ago. It made a 2009 second-half operating profit of roughly 70 million pounds.
Smith added that the company could consider making further small-scale acquisitions, such as its takeover of Brazilian interdealer broker Convencao which is due to be completed this year. ($1=.6402 Pound)
(Editing by Michael Shields)