Deutsche Telekom launches €560 million buyback amid T‑Mobile US merger speculation

Deutsche Telekom announced the start of the third tranche of its share‑repurchase programme, allocating up to €560 million to buy back as many as 23.5 million shares. The buy‑back is part of a total €2 billion plan running to the end of 2026, intended to reduce share capital and boost earnings per share. By the end of June the stock had fallen to a yearly low of €23.54, a decline of roughly 18‑21 % on the year, before stabilising in early July.

Investor sentiment has been shaken by reports that CEO Timotheus Höttges is accelerating a full merger of the German parent with its U.S. subsidiary T‑Mobile US, potentially creating a holding company. Analysts highlight the merger’s regulatory risks, transaction costs and the strategic challenge posed by satellite‑based mobile services such as SpaceX’s Starlink and other emerging rivals. Insider purchases by senior managers have been noted, adding a modest support signal.

The combined effect of the buy‑back and merger speculation has generated heightened volatility in the share price, with technical support levels around €21.50 now under pressure.