Elliott built stake in Deutsche Telekom and opposes T-Mobile merger, Bloomberg News reports

Elliott Investment Management has amassed a significant stake in Deutsche Telekom, expressing opposition to a possible merger with T-Mobile US, according to Bloomberg News on Tuesday, based on sources familiar with the situation. The activist investor is urging Deutsche Telekom to explore alternative methods to enhance shareholder value, such as executing larger share buybacks, the report revealed.

The precise magnitude of Elliott's ownership in Deutsche Telekom remains undisclosed. T-Mobile, the American subsidiary of Deutsche Telekom, did not respond to a Reuters inquiry for comment, while both Elliott and Deutsche Telekom failed to provide immediate reactions. Deutsche Telekom possesses nearly a 54% stake in T-Mobile, serving as its principal revenue generator.

In April, Deutsche Telekom was rumored to be contemplating a full merger with T-Mobile US, potentially resulting in the largest public M&A transaction ever recorded. However, Semafor had disclosed in July that T-Mobile's US executives had informed Deutsche Telekom that they no longer endorse the merger.