Elliott Builds Deutsche Telekom Stake, Opposes T-Mobile Merger
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Elliott Takes Stake in Deutsche Telekom, Opposes T-Mobile US Merger Plans
Activist Investor Challenges Deutsche Telekom’s Strategic Direction
(Corrects paragraph 1 to say Bloomberg report was on Wednesday, not Tuesday)
Elliott’s Investment and Demands
Sept 2 (Reuters) – Elliott Investment Management has built a sizeable stake in Deutsche Telekom and indicated that the company should ditch a potential merger with T-Mobile US, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Alternative Strategies for Shareholder Value
The activist investor wants the German telecom company to consider other ways to unlock shareholder value, including larger share buybacks, the report added.
Stake Details and Company Responses
Uncertainty Over Elliott’s Stake Size
The exact size of Elliott’s stake in Deutsche Telekom could not be determined, the report said. T-Mobile, the company’s American arm, declined a Reuters request for comment, while Elliott and Deutsche Telekom did not immediately respond.
Deutsche Telekom’s Holdings in T-Mobile
Deutsche Telekom holds a nearly 54% stake in T-Mobile — its biggest earnings driver.
Merger Talks and Recent Developments
Potential Record-Breaking M&A Deal
In April, Deutsche Telekom was reportedly considering a full combination with T-Mobile US, which could result in the largest public M&A deal on record.
T-Mobile US Executives’ Opposition
However, Semafor reported in July that T-Mobile’s US executives had told Deutsche Telekom that they no longer support a merger.
Reporting and Editing Credits
(Reporting by Carlos Méndez in Mexico City; Editing by Joyjeet Das)
