Elliott urges Deutsche Telekom to drop T-Mobile US merger

Activist hedge fund Elliott Management has built a stake in Deutsche Telekom and is pressing the company to abandon plans to fully combine with its 53%‑owned unit T-Mobile US, instead urging a programme of share buybacks to return cash to shareholders.

According to people familiar with the matter, Elliott believes repurchases would deliver faster returns than a cross‑border merger. The size of Elliott’s holding has not been disclosed.

Deutsche Telekom has been exploring a full combination of its German operations and T-Mobile US. A deal of that scale would rank among the largest public‑market transactions.

Some minority shareholders in T-Mobile US are reported to be wary of increasing exposure to European markets, where telecom valuations are generally lower than in the US. T-Mobile executives have expressed concern about potential shareholder backlash.

Any merger would face regulatory reviews in the United States and Europe and is likely to attract political attention. On the German side, Deutsche Telekom would need support from influential trade unions and key political stakeholders.

The German government holds about 14% of Deutsche Telekom directly, and state‑backed development bank KfW owns roughly another 14%, giving Berlin substantial influence over major strategic choices.

A full combination would require approval from multiple shareholder groups and clearance from antitrust and national security authorities. Elliott has publicly opposed a merger and advocated buybacks; the company will need to decide whether to pursue a cross‑border deal or to return capital through a significant repurchase programme.