Elliott builds stake in Deutsche Telekom, urges buybacks over T-Mobile merger

Activist investor Elliott Investment Management has built a stake in Deutsche Telekom, a source said Wednesday, urging the German telecom giant to abandon a potential merger with T-Mobile US and pursue other shareholder value measures. The exact size of Elliott's stake is unknown, but Bloomberg reported the firm suggested larger share buybacks instead of the merger. Deutsche Telekom holds about 54% of T-Mobile, its main earnings driver, and Reuters reported in April it was exploring a combination. T-Mobile's U.S. executives reportedly told Deutsche Telekom in July they no longer support a merger due to shareholder and regulatory concerns. Deutsche Telekom, with a market value of about $157 billion, trails T-Mobile's $200 billion, and a deal would have created the world's largest wireless operator.