Menzies faces new demand to break in two

Edinburgh-based aviation logistics and news distribution company John Menzies is facing a new demand from investors to split the firm in two, according to Reuters.

The fresh demands came from German activist Shareholder Value Management on Monday, which is also demanding that Menzies hire an independent chair.

Frankfurt-based Shareholder Value Management has bought a 7%-plus stake in Menzies through sub-fund Frankfurter Aktienfonds für Stiftungen.

“The sum of the values of the two businesses, taken separately, far exceeds the current market price,” Shareholder Value Management analyst Gianluca Ferrari said.

Reuters said that Menzies’ largest investor, Kabouter Management, and Swiss investment firm Lakestreet Capital Partners last April issued separate statements saying Menzies’ current structure caused its share price to be undervalued.

John Menzies did not immediately comment.

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.