Prior to , Metallgesellschaft was originally involved in banking and trading metals. By , MG traded copper, lead, zinc, nickel, aluminum and silver. As the industry began seeing new signs of light and continued expansion across the globe, the company rapidly expanded to reach cities in the United States, Mexico, Australia, France, Russia and Germany. By , the company created its first subsidiary, Metallurgische Gesellschaft Aktiengesellschaft, which was responsible for their industrial and technological interests. This subsidiary later grew to be the leading worldwide engineering business.
Metallgesellschaft AG Case Study Solution & Analysis
METALLGESELLSCHAFT AG EARLY Case Study Solution & Analysis
In a lucid discussion of this infamous derivatives debacle, Digenan, Felson, Kelly and Wiemart explore the trading strategies employed by the conglomerate, how proper supervision could have averted disaster and how similar financial crises may be avoided in the future. MG, a traditional metal company, has evolved in the last four years into a provider of risk management services. MGRW in charge of refining and marketing petroleum products in the U. MGRM's expanded venture into the derivatives world began in with the hiring of Mr.
Metallgesellschaft AG Case Study Help - Case Solution & Analysis
Please join StudyMode to read the full document. However, the two brothers separated creating Adidas and Puma, respectively. Puma had sponsored some of the worlds most famous soccer players, positioning itself as one of the most important company in soccer shoes and accessories. The high society was not willing to wear the brand.
In , the U. With a natural long position in petroleum products, the company hoped to insulate itself from oil price risk. The company agreed to sell specified amounts of petroleum products every month, forward up to 10 years at fixed prices that were higher than current market prices, and then purchased short-term futures to hedge the long-term commitments, otherwise known as a stacked hedging strategy.