DT’s T-Mobile US Merger Plan Encounters Resistance

Deutsche Telekom’s strategic proposal to merge with its subsidiary, T-Mobile US, has encountered significant internal resistance, according to recent media reports. This development has prompted the German telecommunications giant to defer making a formal offer for the time being.

The company faced substantial opposition from its works council and trade unions, which collectively control 50% of the seats on the supervisory board. Deutsche Telekom expressed formal interest in the merger in April of this year. Having become the majority stakeholder in T-Mobile US in 2024, the German operator currently maintains an equity stake of approximately 53%.

However, the German operator may still revisit the proposal at a later date. Last month, the activist investor Elliott Investment Management urged the company to abandon the plan after securing a significant stake in the firm. Deutsche Telekom has steadily increased its holdings in T-Mobile US over several years, and its former German division head, Srini Gopalan, currently serves as CEO of the American subsidiary.