Deutsche Telekom’s Stock Takes a Double Hit: Labour Talks and Merger Jitters

Shares near 52-week low as labor talks heat up and T-Mobile US merger rumors rattle investors, though analysts see buying opportunity ahead of earnings.

The Bonn-based telecoms giant is navigating a tricky stretch, with its share price under pressure from both a contentious wage dispute at home and swirling speculation about a potential tie-up with its US subsidiary. The stock, currently trading at €27.52, has shed nearly 13% over the past month, landing near a 52-week low of €26.45.

Labour Talks Heat Up in Siegburg

The second round of wage negotiations kicked off today in Siegburg, with the ver.di union demanding a 6.6% pay increase over a 12-month contract for roughly 60,000 tariff employees. The union is also pushing for an annual loyalty bonus of €660 for members, alongside higher pay for apprentices and dual-study students. Job security guarantees during the company’s transformation are another key sticking point.

Management, however, is pushing back hard. The company points to the heavy financial burden of its fibre-optic expansion—a project that already connects 12.6 million households, with a target of 25 million by 2030. With billions in infrastructure spending needed, the board argues there is little room for significant cost increases. A quick resolution looks unlikely, with two more negotiation rounds scheduled for May.

Merger Talk Rattles the Chart

Separately, press reports about a potential merger between Deutsche Telekom and its US subsidiary, T-Mobile US, have spooked investors. The stock slipped below its 200-day moving average on 22 April—a classic bearish signal—and now sits roughly 6% below that key technical level at €29.46. The first support level is around €28.50, but if the 200-day line is not reclaimed soon, the chart remains fragile.

Despite the sell-off, analysts remain broadly bullish. Barclays’ Mathieu Robilliard kept his “Overweight” rating and €39.50 target, arguing that any such transaction would likely be the start of a broader industry consolidation rather than a cause for alarm. UBS’s Polo Tang goes further, calling the dip a buying opportunity. He notes that T-Mobile US shares have also fallen, which he finds inconsistent with the fundamentals, and that recent reports suggest a deal is not imminent. His price target stands at €36.20. The average target across 68 analysts is €40.10—roughly 45% above the current price.

Earnings Season Offers a Reality Check

The immediate catalyst for a potential rebound comes this week. On Tuesday, 28 April, T-Mobile US reports its quarterly results. As the main profit engine for the group, its numbers will set the tone for Deutsche Telekom’s own first-quarter report on 13 May.

The group is targeting an adjusted EBITDA of roughly €47.4 billion for 2026, alongside a free cash flow of around €20 billion. If the May report confirms these targets, it could give the stock a concrete reason to reverse its recent slide. For now, the market is waiting to see whether the operational story can outweigh the noise from Siegburg and the merger rumours.