(Adds comments by John Menzies, investor)
LONDON, July 19 (Reuters) - UK airport services andlogistics group John Menzies has appointed Irish paperand packaging industry tycoon Dermot Smurfit as its newchairman, answering a key demand from new activist investorShareholder Value Management (SVM).
SVM, which holds more than 7 percent of the firm, called formore independence on the company's board earlier this month whenit also joined calls from other institutional investors toseparate its aviation services and printed media distributionbusinesses.
The German activist investor complained that current interimchairman Dermot Jenkinson had connections through his wife tothe Menzies family, which control about 19 percent of thecompany through various holdings.
Smurfit, a former deputy chairman of the family firmJefferson Smurfit and currently chairman of Finnish-based paperand packaging group Powerflute, will join John Menzieson July 25, the company said on Tuesday.
Jenkinson, who was appointed in May, had originally agreedto be chairman for 12 months and lead the process to appoint asuccessor.
Menzies has seen a high turnover among executives, with CEOJeremy Stafford quitting in January for personal reasons andChief Financial Officer Paula Bell resigning in April.
A John Menzies spokesman said that Dermot's appointment hadbeen "supported by major shareholders".
Smurfit, 71, has spent over 40 years in the paper andpackaging industry in which time the family business underwent aa series of changes in ownership.
Pointing to Smurfit's strong experience in merger deals, SVManalyst Gianluca Ferrari showed support for Dermot'sappointment.
"We believe that Dr Smurfit brings a wealth of expertise toMenzies and are confident that he is the right person for thejob ... his M&A experience will serve shareholders extremelywell," Ferrari said.
Menzies has been trying to expand the aviation supportbusiness, which includes cargo and baggage handling and freightforwarding services and brings in most of its profits as itsonce core newspaper and magazine distribution business continuesits decline. (Reporting by Esha Vaish in Bengaluru, Paul Sandle and MaiyaKeidan in London; Editing by Mark Potter, Greg Mahlich)
