ETFs & Funds
Home›ETFs & Funds›Fund Industry›Elliott stake pressures Deutsche Telekom to drop T-Mob…
Elliott stake pressures Deutsche Telekom to drop T-Mobile US merger talks
Elliott is urging Deutsche Telekom to focus on measures it views as more immediate shareholder value, including share buybacks, as the deal faces regulatory and political hurdles across both sides of the Atlantic.
Activist hedge fund Elliott Management has built a significant position in Deutsche Telekom and is pressing the German telecoms group to abandon potential plans to combine with its US unit T-Mobile US, according to a report by the Financial Times.
Elliott reportedly wants Deutsche Telekom to prioritize actions it believes could deliver more immediate value for shareholders, including share buybacks. The report said the size of Elliott’s holding could not be confirmed at the time.
Deutsche Telekom owns 53% of T-Mobile US and has been exploring a full combination that would rank among the largest public-market deals proposed. Investor concerns have already emerged, including worries among some minority T-Mobile US shareholders about increased exposure to European markets where telecom companies can trade at lower valuations than in the United States.
The report also pointed to obstacles on both sides of the Atlantic. Any merger attempt would likely require navigating regulatory, political, and labor hurdles, including support from influential German trade unions and political stakeholders, with the German government holding around 14% of Deutsche Telekom and state-backed KfW holding another 14%.