Key Takeaways
- • Elliott Management has built a sizable stake in Deutsche Telekom, according to reports from the Financial Times and Bloomberg, though the exact size has not been disclosed.
- • Elliott opposes a possible merger between Deutsche Telekom and its US carrier T-Mobile, and wants the German telco to pursue alternative shareholder value measures such as larger share buybacks, per Bloomberg sources.
- • Deutsche Telekom CEO Tim Hoettges reportedly favors combining the two companies, putting him at odds with the activist fund.
- • A merger would rank as the largest-ever public M&A deal; Deutsche Telekom holds about 53 percent of T-Mobile.
Summary
New York-based activist hedge fund Elliott Management has built a sizable stake in German telecommunications company Deutsche Telekom, according to reports from the Financial Times and Bloomberg. Both outlets indicate that the fund intends to oppose a possible merger between Deutsche Telekom and its US carrier, T-Mobile.
According to Bloomberg, citing sources, Elliott wants Deutsche Telekom to pursue other ways of creating value for shareholders, such as larger share buybacks. The precise size of Elliott's position has not been confirmed. Under German securities rules, investors must disclose holdings that reach or exceed three percent of a company's stock, so any disclosure would reveal the fund's exact level of ownership.
Elliott's position differs from that of Deutsche Telekom chief executive Tim Hoettges, who reportedly supports bringing Deutsche Telekom and T-Mobile together. Reports in April indicated that Deutsche Telekom was considering such a merger, though both companies have declined to confirm those reports.
Deutsche Telekom has held a stake in T-Mobile since 2001 and regained a majority stake in 2023. It currently holds about 53 percent of the US carrier. A combination of the two companies would rank as the largest public M&A transaction on record.
According to Bloomberg, citing sources, Elliott wants Deutsche Telekom to pursue other ways of creating value for shareholders, such as larger share buybacks. The precise size of Elliott's position has not been confirmed. Under German securities rules, investors must disclose holdings that reach or exceed three percent of a company's stock, so any disclosure would reveal the fund's exact level of ownership.
Elliott's position differs from that of Deutsche Telekom chief executive Tim Hoettges, who reportedly supports bringing Deutsche Telekom and T-Mobile together. Reports in April indicated that Deutsche Telekom was considering such a merger, though both companies have declined to confirm those reports.
Deutsche Telekom has held a stake in T-Mobile since 2001 and regained a majority stake in 2023. It currently holds about 53 percent of the US carrier. A combination of the two companies would rank as the largest public M&A transaction on record.
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