Elliott builds stake in Deutsche Telekom, source says
Activist investor Elliott Investment Management has acquired a stake in Deutsche Telekom, reportedly pushing the company to abandon a potential merger with T-Mobile US. The move aims to unlock shareholder value through alternative strategies like share buybacks.
Why it matters
This intervention by a major activist investor could significantly alter the landscape of the global telecommunications market.
Sept 2 (Reuters) - Elliott Investment Management has built a stake in Deutsche Telekom, a person with knowledge of the matter said on Wednesday.
The exact size of the activist investor's stake in the German telecom company could not be determined.
Bloomberg News, first reporting the news earlier on Wednesday, said Elliott indicated that Deutsche Telekom should ditch a potential merger with T-Mobile US and look at other ways to unlock shareholder value, including larger share buybacks.
T-Mobile, Deutsche Telekom's American arm, declined a Reuters request for comment. Elliott and the German company did not immediately respond.
Reuters reported in April that Deutsche Telekom is exploring a deal to combine with T-Mobile US and create a transatlantic telecoms giant in what would be the largest-ever public merger.
Deutsche Telekom holds around a 54% stake in T-Mobile — its biggest earnings driver.
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