Elliott Takes Stake in Deutsche Telekom, Pushes Against $300B T-Mobile Merger

Elliott Investment Management has built a sizeable stake in Deutsche Telekom AG and is pressuring the German telecommunications giant to scrap a potential full merger with its U.S. subsidiary, T-Mobile US. The activist investor is instead advocating for the company to prioritize large-scale share buybacks to boost shareholder value, Bloomberg reported Wednesday, citing sources familiar with the matter.

Activist Challenges Merger Strategy

The move puts Elliott in direct opposition to the long-held strategy of Deutsche Telekom CEO Tim Hoettges, who has been working towards a full combination of the two entities since at least April 2026. Deutsche Telekom currently holds a stake of roughly 53% in T-Mobile US. A full merger would create the world's largest wireless operator by market capitalization, but Elliott is arguing for an alternative use of capital.

Elliott's campaign comes as Deutsche Telekom's shares have fallen approximately 9% in Frankfurt over the last year, giving the company a market value of about €138 billion ($160 billion), per Bloomberg. This underperformance provides a basis for the activist's argument that returning capital to shareholders is a more effective strategy than pursuing a complex, $300 billion cross-border transaction.

The size of Elliott's stake has not been publicly disclosed. Under German securities regulations, an investor must file a public notice upon acquiring a position of 3% or more.

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Existing Headwinds for the Deal

Elliott's opposition is the latest challenge for the proposed transatlantic tie-up. In late July 2026, Semafor reported that T-Mobile's own executives had communicated to Deutsche Telekom that they no longer supported the merger. The reasons cited included concerns from their own shareholders and anticipated regulatory headwinds in the United States.

Regulators were widely expected to impose conditions on any deal, potentially requiring T-Mobile's revenue to be reinvested domestically. Such a constraint would likely undermine the strategic and financial rationale for Deutsche Telekom to assume full control.