Join Date: Mar 2019
Location: Bergisches Land, NRW, Germany
Castiglioni had no options for taking actions any more. AMG was the 25 % shareholder and wanted to get out due to the mess created by GC. A buy back by GC was obviously not possible, so he was likely no longer in the driver’s seat when it came to selecting who was to buy the 25%. Even if he had a contract with AMG that allowed him to decide on buyers there would likely have been limits, especially for a situation when the value of the company is constantly decreasing due to critical financials.
After Black Ocean was in, it was clear that the current funding was not sufficient to get the company back on track. Then the second investment came and the before minority shareholder became 50% partner, whereas Castiglioni was totally dependent on Sardarov’s willingness to invest further. The third capital injection by the Sardarov family did the rest to clear the new hierarchy.
I would never doubt GC has a passion for the business, but owning and running a business comes with a responsibility. And in times of economic difficulties he lived on as if the company was totally save. In such a situation you should consult with your investors and banks instead of your tattoo artist. Would he have been honest with AMG, the situation could have been solved in 2016 right away, as the amounts of money needed are peanuts for Daimler.