Elliott builds Deutsche Telekom stake and urges T-Mobile US merger rethink

  • Elliott Investment Management urges Deutsche Telekom to abandon T-Mobile US merger.
  • T-Mobile US shares surge 2.82% to $187.30 after the report.
  • Deutsche Telekom plans €5 billion share buybacks amid strategic challenges.

Elliott Investment Management has accumulated a position in Deutsche Telekom and is urging the telecom giant to abandon its merger ambitions with T-Mobile US. Shares of T-Mobile US surged 2.82% to close at $187.30 on Wednesday after Bloomberg broke the story, while Deutsche Telekom shares climbed 1.5% in Thursday trading in Frankfurt. Elliott is advocating for more aggressive share repurchase programs rather than a complete merger. Deutsche Telekom has pledged to repurchase up to €5 billion of its shares this year and owns about 53% of T-Mobile US. The proposed $300 billion deal has faced regulatory hurdles and waning support from T-Mobile leadership. J.P. Morgan analyst Akhil Dattani maintains an overweight rating, calling the stock extremely cheap despite strategic overhangs.

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