Key facts
- Elliott Investment Management has acquired a significant stake in Deutsche Telekom.
- Elliott opposes a potential merger between Deutsche Telekom and T-Mobile US.
- Elliott is urging Deutsche Telekom to pursue increased share buybacks.
- Deutsche Telekom holds a 53% stake in T-Mobile US.
- The German government, via KfW, is Deutsche Telekom's largest shareholder with a 28% stake.
Elliott Investment Management has acquired a substantial stake in Deutsche Telekom and is reportedly opposing a potential merger between the German company and its U.S. subsidiary, T-Mobile US. The activist investor is advocating for Deutsche Telekom to explore alternative methods for enhancing shareholder value, such as larger share buybacks. Earlier reports indicated that Deutsche Telekom was considering a merger with T-Mobile US, a move that could establish the world's largest telecommunications company with a market value approaching $300 billion. Deutsche Telekom currently holds a majority stake of 53% in T-Mobile US. The German government, through its state lender KfW, is the largest shareholder in Deutsche Telekom with a 28% stake, and any merger would likely require its approval. Following news of the potential merger talks, Deutsche Telekom's shares experienced a decline of approximately 5%, while T-Mobile US shares fell by around 3.5%.