Business & Markets
Elliott builds Deutsche Telekom stake and opposes T-Mobile merger, reports say
The activist investor is reported to favor larger share buybacks as an alternative; the size of its holding remains undisclosed.
Executive summary
- The stake: Elliott Investment Management has built a stake in Deutsche Telekom, according to separate reports from Bloomberg and Reuters; the size of the holding has not been disclosed.[1][2]
- The campaign: The activist investor opposes a potential merger between Deutsche Telekom and its U.S. unit T-Mobile and favors alternatives including larger share buybacks, the reports said.[1][2]
- The ownership: Deutsche Telekom holds about 54% of T-Mobile US, making the American carrier its most important subsidiary and the proposed combination unusually large and complex.[2]
- The uncertainty: Elliott, Deutsche Telekom and T-Mobile have not publicly confirmed a merger campaign or disclosed Elliott's stake, and a transaction remains only a reported possibility.[1][2]
Elliott Investment Management has built a stake in Deutsche Telekom and is urging the German telecom group to abandon a potential merger with T-Mobile US in favor of options including larger share buybacks, according to separate reports from Bloomberg and Reuters. The exact size of the activist investor's position could not be determined.[1][2]
Bloomberg first reported the campaign, citing people familiar with the matter. Reuters later said people with knowledge of the situation confirmed both the stake and Elliott's opposition to a T-Mobile combination. Deutsche Telekom and Elliott were not immediately available for comment, while T-Mobile declined Reuters' request for comment.[1][2]
Deutsche Telekom owns about 54% of T-Mobile US, its largest earnings driver. Reuters reported in April that the parent was exploring a full combination with the U.S. carrier, a transaction that would create the world's largest wireless operator by market value but would face substantial shareholder, regulatory and political scrutiny.[2]
Deutsche Telekom shares rose 1.9% in early Thursday trading after the reports, reflecting investor support for a possible shift away from the merger plan. Under German law, shareholdings above 3% must be disclosed publicly; Reuters said it could not determine whether Elliott's position had crossed that threshold.[2]
Elliott's reported intervention adds a powerful activist shareholder to an already uncertain strategic debate. Larger buybacks could return capital more quickly, while a full merger could deepen Deutsche Telekom's control of its most valuable business but require a more complicated financing and approval process. Until the companies or a regulatory filing confirm the stake and any proposal, both remain reported developments rather than completed corporate actions.[1][2]