Elliott Builds Stake in Deutsche Telekom, Opposes Merger with T-Mobile
nashnova research
Activist investor Elliott has built a sizable position in Deutsche Telekom and is pushing back against a merger with T-Mobile US, demanding expanded buybacks instead — a shareholder standoff over what would be the largest public-company deal in history is now in play.
What does Elliott actually want?
Elliott wants Deutsche Telekom to drop the merger and expand share buybacks, returning capital directly to shareholders.
This means → Elliott sees the stock as undervalued and believes buybacks would lift the price faster than a complex merger.
The stance clashes head-on with CEO Tim Hoettges, who has been working to combine the two companies into the world's largest telecom operator.
Why was this merger already in trouble?
T-Mobile executives had already raised concerns about the deal — internal resistance predates Elliott's arrival.
Deutsche Telekom holds roughly 53% of T-Mobile and began early-stage talks in April to create a new holding company that would unify both businesses under a simplified structure.
If completed, the transaction would be the largest public-company merger ever — the bigger the deal, the harder it is to clear regulatory and shareholder hurdles.
How have both stocks performed?
Over the past twelve months, Deutsche Telekom shares in Frankfurt have fallen about 9%, valuing the company at roughly €138 billion (about $160 billion).
T-Mobile has dropped nearly 27% in New York over the same period, with a market cap of about $200 billion — a far steeper decline than its parent.
In plain terms = both stocks are sliding, but T-Mobile's sharper fall hands Elliott leverage: the merger thesis has not supported the share price — it may be eroding value.
Who is Elliott, and why does the market care?
Elliott, led by Paul Singer, is one of the world's most active activist investors.
Recent move: it took a stake in France's Air Liquide and pushed the company to improve margins — the same playbook of building a position, then pressing for change.
This reflects a pattern — Elliott enters with a concrete governance agenda, making it difficult for management to sideline.
What comes next?
Elliott's exact stake size has not been disclosed; German securities law requires disclosure only when holdings reach or exceed 3%.
The key test: whether Elliott's involvement can materially block the merger or force Deutsche Telekom onto a buyback path.
Deutsche Telekom, T-Mobile, and Elliott all declined to comment — the silence itself suggests all sides are still weighing their options.
市场有风险，内容仅供研究参考，不构成投资建议。