Shares in Deutsche Telekom DTEGn.DE rise 1.9% in early Frankfurt trade after a source said activist investor Elliott Investment Management has built a stake in the German telecom company.
Bloomberg News, first to report the news, said Elliott is urging Deutsche Telekom to ditch a potential merger with T-Mobile US TMUS.O and consider other ways to unlock value, such as larger share buybacks.
"Positive as activist presses to prioritize capital returns and to drop a complex and not liked merger idea," a local trader says.
Reuters could not determine the exact size of Elliott's stake.
Deutsche Telekom, down around 7% since the merger talks emerged in April, tops Germany's blue-chip index DAX .GDAXI in early Frankfurt trade.
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