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.Bloomberg — Elliott builds Deutsche Telekom stake and opposes T-Mobile mergerReuters — Deutsche Telekom shares rise as sources confirm Elliott stake
- 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.Bloomberg — Elliott builds Deutsche Telekom stake and opposes T-Mobile mergerReuters — Deutsche Telekom shares rise as sources confirm Elliott stake
- 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.Reuters — Deutsche Telekom shares rise as sources confirm Elliott stake
- 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.Bloomberg — Elliott builds Deutsche Telekom stake and opposes T-Mobile mergerReuters — Deutsche Telekom shares rise as sources confirm Elliott stake
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.Bloomberg — Elliott builds Deutsche Telekom stake and opposes T-Mobile mergerReuters — Deutsche Telekom shares rise as sources confirm Elliott stake
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.Bloomberg — Elliott builds Deutsche Telekom stake and opposes T-Mobile mergerReuters — Deutsche Telekom shares rise as sources confirm Elliott stake
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.Reuters — Deutsche Telekom shares rise as sources confirm Elliott stake
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.Reuters — Deutsche Telekom shares rise as sources confirm Elliott stake
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.Bloomberg — Elliott builds Deutsche Telekom stake and opposes T-Mobile mergerReuters — Deutsche Telekom shares rise as sources confirm Elliott stake