UPDATE 2-Sun shares drop on failed IBM talks, stands by CEO

* Sun shares fall 22.7 pct after IBM talks collapse

* Sun says committed to leadership team, growth strategy

* Analysts fear Sun will share same fate as Yahoo

* Some investors expect talks to resume (Adds Sun statement, lawyer comments, background)

By Ritsuko Ando and Jim Finkle

NEW YORK/BOSTON, April 6 (Reuters) - Shares of Sun Microsystems Inc (JAVA.O) tumbled 23 percent after it rejected a $7 billion buyout bid from IBM (IBM.N), leaving the smaller server and software maker vulnerable to lawsuits from shareholders nervous about its viability as a stand-alone company.

Amid expectation that the collapse of deal talks with IBM could put pressure on Sun Chief Executive Jonathan Schwartz, Sun said in an e-mailed statement on Monday that it would stand by its leadership team and growth strategy.

While some on Wall Street held out hopes for bargaining to resume, a source with knowledge of the matter said that talks broke down over the weekend after Sun turned down International Business Machines Corp's offer of up to $9.40 per share.

Sun shares fell to $6.56 from their close last week at $8.49. But they remain above the $4.97 level before the talks with IBM were first reported on March 18.