Lex denies breakdown in talks with Paccar

Lex Service, the motoring services company, yesterday played down claims that it has had a rift with Paccar, the world's leading truck maker, over negotiations concerning the distribution of DAF parts.

Talks with Paccar "remain unresolved", Lex said, despite the contract between the two expiring in 2003. Niall Addison, a spokesman for Lex, would not comment on details but did stress "there are no contentious issues" separating the two.

Lex's stockbroker, ABN Amro Hoare Govett, was also keen to calm fears of a division, with analyst Toby Forrington assuring that the matter "should be resolved within the next couple of months". The stock market was unperturbed, with Lex shares closing up 14p yesterday at 484p.

Guy Hewett, an analyst at WestLB Panmure, mirrored Lex's re-assurance. "There is no fundamental disagreement. It is more of a case of dotting the 'i's and crossing the 't's."

However, another analyst, who asked not to be named, revealed the size of the deal for Lex was a factor. "If the contract goes ahead, Lex stands to make a very large amount of money in the context of a small business. They are being meticulous about the details of the deal, so as not to jeopardise it."

Lex also revealed trading in the six months to 30 June was broadly in line with expectations.