SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
AMENDMENT NO. 1
Under the Securities Exchange Act of 1934
ITEQ INC.
(Name of issuer)
COMMON STOCK
(Title of class of securities)
450430103
(CUSIP number)
Don A. Sanders, 3100 Chase Tower
Houston, Texas 77002 (713) 224-3100
(Name, address and telephone number of person
authorized to receive notices and communications)
October 25, 1999
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement
on Schedule 13G to report the acquisition which is the subject
of this Schedule 13D, and is filing this schedule because of Rule
13d-1 (b) (3) or (4), check the following box.
Check the following box if a fee is being paid with the
statement. (A fee is not required only if the reporting person:
(1) has a previous statement on file reporting beneficial ownership
of more than five percent of the class of securities described in
Item 1; and (2) has filed no amendment subsequent thereto reporting
beneficial ownership of five percent or less of such class.)
(See Rule 13d-7)
SCHEDULE 13D
CUSIP No. 450430103 Page 2 of 5 Pages
1 NAME OF REPORTING PERSON S.S.OR I.R.S.IDENTIFICATION NO.
OF ABOVE PERSON
DON A. SANDERS
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) (
(b) (
3 SEC USE ONLY
4 SOURCE OF FUNDS*
PF
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(E) (
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
7 SOLE VOTING POWER
NUMBER OF
SHARES 46,500
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 46,500
10 SHARED DISPOSITIVE POWER
2,436,300
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,482,800
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* (
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.8%
14 TYPE OF REPORTING PERSON*
IN
Item 1. Security and Issuer
The class of equity securities to which this statement
relates is the common stock (the "Common Stock") of ITEQ Inc.,
whose principal executive office is located at 2727 Allen Parkway,
Suite 760, Houston, Texas 77019.
Item 2. Identity and Background
This statement is filed on behalf of Don A. Sanders, a U.S.
Citizen ("Sanders" or "Reporting Person"), whose business address
is 3100 Chase Tower, Houston, Texas 77002. Sanders currently serves
as the Chairman of the Executive Committee of Sanders Morris Mundy
Inc., an investment banking firm, whose address is 3100 Chase Tower,
Houston, Texas 77002.
Sanders has not, during the last five years, been convicted
in a criminal proceeding (excluding traffic violations or similar
misdemeanors), nor has Sanders, during the last five years, been a
party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is
subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violations with
respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration
The funds used or to be used in making purchases of the
Issuer's Common Stock are personal funds of Sanders.
Item 4. Purpose of Transaction.
The securities of the Issuer were acquired by Sanders and
his Spouse ("Spouse") in open market transactions and privately
negotiated transactions for the purposes of investment. Sanders
currently intends to review continuously his equity interest in
the Issuer and may or may not seek involvement in the Issuer's
affairs. Depending upon his evaluation of the Issuer's business
and prospects and upon future developments, Sanders, or other
entities that may be deemed to be affiliates of Sanders, may from
time to time purchase additional securities of the Issuer, dispose
of all or a portion of the securities held by such person, or cease
buying or selling shares. Any such additional purchases of the
securities may be in open market or privately negotiated
transactions or otherwise.
Except as described in this Item 4, the Reporting Person has
no present plans or proposals which relate or would result in:
(i) the acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer, (ii) an
extraordinary corporate transaction such as a merger, reorganization
or liquidation, involving the Issuer or any of its subsidiaries,
(iii) a sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries, (iv) any change in the present
board of directors or management of the Issuer, (v) any material
change to the present capitalization or dividend policy of the Issuer,
(vi) any other material change in the Issuer's business or corporate
structure, (vii) changes in the Issuer's charter, bylaws or
instruments corresponding thereto or other actions which may impede
the acquisition of control of the Issuer by any person, (viii)
causing a class of securities of the Issuer to be delisted from
a national securities exchange or to cease to be authorized to
be quoted on an inter-dealer quotation system of a registered
national securities association, (ix) a class of equity securities
of the Issuer becoming eligible for termination of registration
pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934,
as amended, or (x) any actions similar to any of those enumerated
above.
Item 5. Interest in Securities of the Issuer.
The Reporting Person directly owns 46,500 shares (The
"Reporting Person Shares") of Common Stock and has the shared
power to dispose of or direct the disposition of 2,436,300 shares
of Common Stock (the "Client Shares") of certain of the Reporting
Person's clients (the "Clients) from whom the Reporting Person has
been granted the right to dispose of or direct the disposition of
the Client Shares. The Reporting Person's Spouse directly owns
0 shares of Common Stock ("Spousal Shares"). The Client Shares
together with the Reporting Person Shares and the Spousal Shares
represent an aggregate of 2,482,800 shares or 8.8% of the Common
Stock.
The Reporting Person has the sole power to vote or to
direct the vote, and to dispose of or to direct the disposition
of the Reporting Person Shares and the shared power to dispose
of or to direct the disposition of the Client Shares.
The Reporting Person claims no beneficial ownership or
dispositive powers with regard to the Spousal Shares.
The following table represents all the Reporting Person's
transactions involving common stock during the last 30 days.
Date Entity Purchase/Sale Number Shrs Price
10-13-99 Discretionary Bot 5,000 1.300
10-14-99 Discretionary Sold 6,000 1.1244
10-25-99 Reporting Person Sold 900,000 1.062
10-25-99 Spouse Sold 55,000 1.061
10-25-99 Discretionary Bot 1,748,900 1.063
The Reporting person has the right to receive or the power
to direct receipt of dividends from, or the proceeds from the sale
of 46,500 shares of Common Stock, while the applicable Client has
the right to receive or the power to direct receipt of dividends
from, or the proceeds from the sale of the applicable Client Shares.
The Spouse has the right to receive or the power to direct
receipt of dividends from, or the proceeds from the sale of 0
shares of Common Stock.
(e) n/a
Item 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Issuer.
The Reporting Person has no contract, arrangement, understanding
or relationship (legal or otherwise) with any person with respect
to securities of the Company, including, but not limited to,
transfer or voting of any of the securities, finder's fees, joint
ventures.
Item 7. Materials to be Filed as Exhibits.
None
Signature
After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this filing is true,
correct and complete.
Dated November 8, 1999
__________________________________
/s/ Don A. Sanders
