Elliott Builds Stake in Deutsche Telekom, Opposes T-Mobile Merger
TMUS is trading near its 52-week low of $165.66 (13% above the low).
Summary
Elliott Investment Management has built a sizeable stake in Deutsche Telekom and is pushing against the planned merger with T-Mobile US. The activist wants Deutsche Telekom to pursue alternative value-creation moves, including larger share buybacks. This directly challenges the merger strategy that Deutsche Telekom's CEO has been pursuing since June. The news introduces a powerful activist investor into the equation, which could derail the deal or force changes in its terms. T-Mobile shareholders should watch for Deutsche Telekom's response and any formal activist campaign.
At the time of this announcement, TMUS was trading at $187.27 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $200.9B. The 52-week trading range was $165.66 to $256.69. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.