Deutsche Telekom's best M&A path may be in EU
TMUS•Context from Reuters reporting
Activist investor Elliott Investment Management has built a stake in Deutsche Telekom and is urging the German group to abandon a potential merger with its American unit T-Mobile US, Reuters reported on Sept. 3, citing two people familiar with the matter.
Elliott would prefer alternative options to unlock shareholder value like larger share buybacks, according to the report.
In August, Deutsche Telekom boosted its 2026 share buyback programme by €3 billion to up to €5 billion, citing low valuation of its shares relative to their historical levels.
Deutsche Telekom's M&A options
Shareholders dislike a possible merger with $180 billion T-Mobile US, which the $150 billion German carrier half-owns. A spinoff of the stake would make sense, but seems unlikely. A middle-ground option would be to reduce the holding and use the proceeds for European deals instead.
