Menzies talks with DX ongoing

DX Group, the parcels business planning a merger with the distribution arm of Edinburgh-based John Menzies, said yesterday that City of London Police would not be launching a full investigation following allegations against its document delivery service.

The firm said the force’s economic crime directorate would not press ahead with an in-depth probe into DX Exchange after examining the allegations made.

DX stressed that it had cooperated with the preliminary investigation and made changes to the “internal business processes” of the operation, which will remain under review.

In a stock exchange statement, John Menzies said it noted the announcement, adding: “The board of John Menzies continues to believe that the combination of DX and John Menzies’ distribution division has strong strategic logic for all stakeholders and that the transaction represents an opportunity to deliver significant value.

“Discussions between John Menzies and DX are ongoing and a further announcement will be made as and when appropriate.”

It added: “There can be no certainty that a transaction will occur.”

A spokesman at City of London Police said: “After careful consideration we have concluded that we do not consider it is in the public interest to progress to a full investigation.

“We continue to work with DX management to highlight our concerns over a number of business processes within the lower levels of the company”.

The tie-up between DX and Menzies had also come under pressure from activist investor Gatemore, which only dropped its opposition to the merger recently after the pair revised terms.