• Elliott has built a stake in Deutsche Telekom and is pressing it to abandon a potential full combination with T-Mobile US
  • Deutsche Telekom already controls about 54% of T-Mobile US and has expanded its 2026 share-buyback programme to as much as €5 billion

The fact

Activist investor Elliott Investment Management has built a stake in Deutsche Telekom and is urging the German telecoms group to abandon a potential merger with T-Mobile US, Reuters reported on 3 September, citing two people familiar with the matter. Reuters could not determine the size of Elliott's holding. Bloomberg first reported the investor's position.

Elliott would prefer Deutsche Telekom to pursue other ways of increasing shareholder value, including larger share buybacks, according to the reporting. Deutsche Telekom holds around 54% of T-Mobile US and has been exploring a combination with its US subsidiary. No transaction has been announced, and the status of those discussions remains unclear.

Deutsche Telekom increased its 2026 share-buyback programme in August by up to €3 billion, taking the potential total to as much as €5 billion by year-end. The company said the increase was intended to address its share valuation and reduce the number of shares outstanding.

The assessment

Deutsche Telekom already owns about 54% of T-Mobile US, so it does not need a merger to gain control of the business. The question is whether bringing T-Mobile US fully into Deutsche Telekom would create enough value to justify changing the current ownership structure.

Elliott argues that Deutsche Telekom should take a simpler route and spend more on buying back its own shares. That would return capital to shareholders without changing the group's existing control of T-Mobile US. Until Deutsche Telekom publishes the terms of a possible merger, it is difficult to compare the two options properly.

For BTW readers, this is mainly a debate about ownership and capital allocation, not about T-Mobile's network. Elliott's intervention does not by itself change network investment, deployment plans or day-to-day operations.

What to watch

Watch for Deutsche Telekom to confirm whether it is formally pursuing a combination and disclose its structure and terms. An Elliott holding above Germany's 3% disclosure threshold would also clarify the size of its position. Any formal proposal can then be compared with Deutsche Telekom's existing buyback programme and current majority ownership of T-Mobile US.