DeZwarteRidder schreef op 25 februari 2024 15:41:
Under the leadership of CEO Schimmelbusch, Metallgesellschaft entered the oil business by selling fuel to customers via its American subsidiary, MG Refining and Marketing in the form of fixed price long-term contracts (up to 10 years).[6] Metallgesellschaft attempted to hedge its exposure to rising oil prices on the futures market.[2] However, in 1993, oil prices began to drop and Metallgesellschaft's derivatives strategy turned into extensive paper losses.[6] The company's largest shareholder, Deutsche Bank found out and responded by ousting Schimmelbusch and liquidating Metallgesellschaft's positions which turned the virtual losses into real losses.[5][6]
The decision by the MG AG supervisory board to end MG Refining and Marketing (MGRM)'s marketing program early – against loud protests from Schimmelbusch and the management board – led to international controversy. Metallgesellschaft almost went bankrupt after losing an estimated $1.3 billion on speculative bets in oil future markets.[5]