Elliott Investment Management Opposes Deutsche Telekom T-Mobile US Merger

Activist investor Elliott Investment Management has acquired a significant stake in Deutsche Telekom AG and is formally opposing a proposed merger between the German telecommunications giant and its American subsidiary, T-Mobile US Inc.

The investment firm is urging Deutsche Telekom to abandon the merger in favor of alternative methods to increase shareholder value, specifically requesting larger share buybacks. This intervention follows a period of poor market performance, with Deutsche Telekom shares declining 9% and T-Mobile shares falling nearly 27% over the past year.

This position directly conflicts with the strategy of Deutsche Telekom CEO Tim Hoettges, who has sought a full combination of the two entities to create the world's largest phone company. Deutsche Telekom currently holds approximately 53% of T-Mobile. The activist investor's opposition aligns with existing internal resistance from T-Mobile executives who have previously expressed concerns over the merger.