Elliott builds Deutsche Telekom stake, opposes T-Mobile merger

Elliott Investment Management has taken a large stake in Deutsche Telekom and is urging the German carrier to abandon plans for a full merger with T-Mobile US ↗ 0.38%, instead pressing for expanded share buybacks, Bloomberg reported on Wednesday. The campaign by one of the world's most prominent activist investors adds fresh pressure to a deal that was already losing momentum.investing+1

A Merger Under Siege

Deutsche Telekom CEO Tim Hoettges has pursued a full combination with T-Mobile US since at least April 2026, when Bloomberg first reported that the company was in early-stage discussions to create a holding company and make a stock bid for both companies' shares. The deal, valued at roughly $300 billion, would have created the world's largest wireless operator by market capitalization.bloomberg+1

But the proposal has faced resistance on multiple fronts. Semafor reported in late July that T-Mobile's own executives had told Deutsche Telekom they no longer supported the merger, after non-controlling shareholders — largely institutional investors — signaled they would vote against the transaction. Those investors argued that folding T-Mobile entirely into its slower-growing German parent would undervalue the American business, which generated approximately $18 billion in adjusted free cash flow last year.semafor+1

Regulatory concerns compounded the opposition. U.S. officials indicated that the Committee on Foreign Investment in the United States would likely require that T-Mobile's revenue remain invested domestically, a constraint that would have undermined Deutsche Telekom's strategic rationale.thenextweb+1

Elliott's Playbook

Elliott's specific stake size has not been disclosed. Under German securities rules, investors must file a notification once a position reaches 3% of a company's shares, meaning a regulatory filing could be forthcoming. Deutsche Telekom shares have fallen roughly 9% in Frankfurt over the past 12 months, giving Elliott a ready-made case that capital earmarked for a complex cross-border merger would be better returned to shareholders.investing

The Deutsche Telekom campaign is part of a broader European offensive by Elliott. On September 1, Reuters reported that the fund had also built a position in Air Liquide, the French industrial-gas group, where it is pushing for margin improvements. Deutsche Telekom itself boosted its buyback program by up to €3 billion in early August when it reported second-quarter results, but Elliott appears to want the company to go further.wsj+1

What Comes Next

The activist's intervention does not alter Deutsche Telekom's controlling 53% stake in T-Mobile US, nor does it formally kill the merger. But combined with opposition from T-Mobile's minority shareholders, U.S. regulatory headwinds, and now a well-resourced activist in its own shareholder base, the path to a full combination has narrowed considerably.