Elliott Builds Stake in Deutsche Telekom

Deutsche Telekom faces new activist pressure after Elliott Management built a substantial stake in the German telecommunications group. The hedge fund operator has urged Deutsche Telekom not to proceed with a proposed $300 billion merger deal with its U.S. arm, T-Mobile US, in which Deutsche Telekom holds an ownership stake of about 53%. Instead, Elliott wants the company to explore other ways to return value to shareholders, including larger share buybacks.

The push creates a clash with Deutsche Telekom CEO Tim Hoettges, who has pursued a full combination of the parent company and T-Mobile US to simplify corporate structure and improve access to capital markets. Elliott argues that a merger carries execution risk and prefers repurchases that would reduce share count and increase earnings per share. Deutsche Telekom carries a market capitalization of approximately $157 billion, and its shares have traded flat this year.

In the second quarter of 2026, Deutsche Telekom grew revenue by 4.4% year over year to 29.9 billion euros, while service revenues climbed 4.8% to 25.4 billion euros. Adjusted earnings per share rose nearly 13% to 0.58 euros per share, and free cash flow increased 3% to about 5.02 billion euros. The company closed the quarter with approximately 5.4 billion euros in cash, which remained well below its short-term debt levels.

Subscriber metrics showed mixed results across regions. Postpaid net account additions at T-Mobile US slowed to 277,000 from 318,000 a year earlier, while mobile contract net additions in Europe declined to 189,000 from 209,000. Broadband contract net additions in Germany climbed roughly 18% to 218,000. Wall Street sentiment remains largely positive: among 13 analysts tracking the stock, 11 rate it a "Strong Buy" and two rate it a "Hold", with an average price target of $41.54 pointing to roughly 27% upside.