Buybacks, Boardroom

Buybacks, Boardroom Shifts and a Satellite Play: Inside Deutsche Telekom's Busy Autumn

Published on 09/12/2026 at 13:42 | Editorial boerse-global.de

Deutsche Telekom keeps buying back shares as Elliott presses it to drop a full T-Mobile US merger and return more capital to shareholders.

Unmarkierter 5G-Funkmast auf Berggipfel vor orangefarbenem Sonnenuntergangshimmel
Fotorealistisches Panoramabild eines markenlosen 5G-Funkmastes auf einem felsigen Berggipfel bei dramatischem Sonnenuntergang – ein Kernsymbol der Netzinfrastruktur der Deutsche Telekom AG (ISIN DE0005557508) Illustration mit AI erstellt.

Deutsche Telekom is pressing ahead with its share repurchase programme even as an activist investor turns up the heat on the group's US strategy. Between 31 August and 4 September the Bonn-based carrier bought back 2,897,200 of its own shares, bringing the total since the programme began on 10 August to 8,072,565 shares.

The buyback is running alongside a crowded strategic agenda — and it is the fight over capital allocation that is drawing the most attention.

Elliott Builds a Stake and Pushes Back on T-Mobile US

Elliott Investment Management built a significant position in Deutsche Telekom in early September, according to Reuters, which did not disclose the exact size. The activist is pressing the company to abandon plans for a full merger with its US subsidiary T-Mobile US and to channel the money into larger share buybacks instead.

That puts Elliott on a collision course with chief executive Tim Höttges, who — according to Handelsblatt research — has had a small specialist team working since late June on a holding structure designed to bring Deutsche Telekom and T-Mobile US together. The two camps are divided on a single question: how much capital should go into a tighter integration with the high-margin US business, and how much should flow back to shareholders through buybacks and dividends?

The news gave the stock a lift of as much as 2.3% at one point. On Friday the shares added 1.9% to close at EUR 28.45, leaving them roughly 17% below their 52-week high of EUR 34.35 reached at the end of February. The stock is trading just above its 50-day average of EUR 27.73, a sign of some stabilisation after a softer stretch.

Should investors sell immediately? Or is it worth buying Deutsche Telekom?

Adding to the mix, Kepler Cheuvreux analyst Florian Treisch downgraded the shares from "Buy" to "Hold" on 27 August and trimmed his price target from EUR 35 to EUR 32 — a signal that enthusiasm on the capital markets for the merger plans has cooled of late.

Solid Operating Numbers, a Raised Forecast

The dispute lands at a company that has been delivering on the operational front. Net revenue rose to EUR 29.9 billion in the second quarter, with organic growth of 3.3%. Adjusted EBITDA AL grew organically by 7.3% to EUR 11.8 billion, while free cash flow AL advanced 3.1% to EUR 5.0 billion.

Deutsche Telekom responded by lifting its full-year free cash flow guidance from "more than EUR 19.8 billion" to "around EUR 20.0 billion" and by deciding to top up the current buyback programme by up to EUR 3 billion by the end of 2026.

Satellite Consortium Adds a Second Front

Beyond the T-Mobile US debate, Deutsche Telekom is exploring cooperation with Orange, Vodafone Group and TelefĂłnica on an EU satellite frequency offering. Reuters reported on early talks about a possible consortium that would also cover direct-to-mobile services, while stressing that no final decisions have been made. Should the project take shape, it could open up additional growth fields beyond the classic mobile business.

Boardroom Reshuffle and Upcoming Catalysts

The leadership overhaul announced last week — with Christian Illek set to leave after the 2027 annual general meeting and Dhananjay Mirchandani taking over as CFO from May 2027 — remains a sideshow for investors next to the Elliott debate. Mirchandani currently heads group controlling.

The management team is also being reshaped in the nearer term: Mladen Mitic takes on the role of Chief Product & Digital Officer on 1 October, and a month later Jan Hofmeyr joins from Amazon Web Services as the new board member for product and technology.

Two dates stand out on the calendar. On 5 October the group hosts an investor day focused on the opportunities of artificial intelligence, and on 5 November it reports third-quarter figures. Both events give management a chance to stake out a clearer position on Elliott's demands.

Until then, the question of whether Höttges can defend his merger strategy against an increasingly vocal activist is likely to remain the decisive driver for the share price — more important than individual operating figures. With a market capitalisation of around EUR 135.11 billion, Deutsche Telekom remains one of the largest names in the European telecommunications sector, and its strategic choices are being watched well beyond its own shareholder base.

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