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John Menzies says ready for dialogue with shareholders

By Maiya Keidan and Esha Vaish

LONDON (Reuters) - Britain's John Menzies (MNZS.L) said it was open to dialogue after Germany activist investor Shareholder Value Management (SVM) on Monday joined calls for the business to be broken up.

SVM said it had taken its stake in the British distribution and aviation company to more than seven percent and also called for it to hire an independent chairman.

"The board is progressing its evaluation of the optimal structure for the group against the potential opportunities for expansion and acquisition in both divisions," said a spokesman for John Menzies in an emailed statement to Reuters.

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Frankfurt-based 1.7 billion euro ($1.9 billion) fund SVM has acquired over 7 percent of John Menzies through its Frankfurter Aktienfonds für Stiftungen arm, it said.

Other investors first called on John Menzies to split up its business last year, saying that its newspaper and magazine distribution and aviation services businesses would be worth more apart.

SVM is making the same case but says it is acting alone.

Shareholder Swiss investment firm Lakestreet Capital Partners declined to comment and John Menzies' largest outside investor, Kabouter Management, was not immediately available for comment on Monday. Both the shareholders had separately lobbied for a split.

John Menzies shares were down 0.5 percent at 552 pence at 1430 GMT on Monday, valuing the company at around 340 million pounds ($452 million).

Although John Menzies' shares have gained about 11 percent over the past year to close at 555 pence on Friday, they are still way below the high of 841.50 pence hit in October 2013.

The John Menzies family, through various holdings, holds the largest stake, about 19 percent, in the company.

SVM is calling for a new, independent chair after Dermot Jenkinson replaced Iain Napier as chairman in May. Jenkinson has agreed to do the job for 12 months and lead the process to appoint a new chairman.

Ferrari said Jenkinson, who first joined the John Menzies board in 1986, had connections to the Menzies family through his wife.

The company has seen high turnover among executives, with CEO Jeremy Stafford, quitting in January for personal reasons and Chief Financial Officer Paula Bell resigning in April.

John Menzies started as a chain of newsagents and was the Scottish agent for the monthly instalments of Charles Dickens' first novel, "The Pickwick Papers".

($1 = 0.7524 pounds)

(Reporting by Maiya Keidan and Esha Vaish, additional reporting by Georgina Prodhan and Alexander Huebner; editing by Simon Jessop and Keith Weir)