Deutsche Telekom Weighs Full T-Mobile US Buyout as Stock Touches Oversold Territory Near Year Low

Stock slides within 2.8% of 52-week low amid strategic initiatives: CEO explores T-Mobile US takeover, union pact secured, buyback expiry looms.

Deutsche Telekom's stock is testing the patience of investors, sliding to within 2.8% of its 52-week low even as the company lines up a slate of strategic initiatives. The shares closed Friday at €26.72, down 0.85% on the day and nearly 5.7% for the week, while the relative strength index dropped to 33.3 — a level that chart watchers interpret as approaching oversold conditions. With the November 2025 trough of €25.99 now uncomfortably close, the coming week’s ability to hold the €26 mark will be critical to avoid a fresh leg lower.

Against that technical backdrop, CEO Tim Höttges is reportedly exploring a full takeover of the group’s US jewel, T-Mobile US. According to the Wall Street Journal, a newly formed holding company would absorb the remaining minority stake in the American unit, which already accounts for roughly two-thirds of group revenue. Such a move would streamline capital allocation and lock in the robust cash flows that back T-Mobile US’s quarterly dividend of $1.02 per share — an annualised $4.08 yield that keeps the Bonn headquarters well supplied with dollars from its most important foreign market.

On the home front, labour relations have been settled for the medium term. The ver.di union officially approved the negotiated pay package on Friday, with more than 80% of members voting in favour. The deal covers around 60,000 domestic employees and guarantees predictability on personnel costs through the end of 2028, while barring operational redundancies for the same period. This removes a key overhang for the stock, yet the market has so far shrugged off the news.

Meanwhile, the group’s €2 billion buyback programme, which has been providing a floor under demand, faces a small headwind: a €550 million tranche expires at the end of June. Operationally, T-Systems is forging ahead with an AI-driven supply chain partnership with the platform SupplyOn, aiming to automate procurement and logistics using secure data processing at a Munich data centre. And MagentaTV is enjoying a record run, drawing more than 36 million viewers in the first seven days of the football World Cup, with an exclusive match peaking at 6.5 million — a boost that is pushing subscription numbers higher.

But the domestic picture is not without friction. Deutsche Telekom plans to shut down its 2G network in summer 2028 to free up spectrum for 5G and 6G, a move that threatens around 5.5 million vehicles whose eCall emergency systems still rely on the legacy technology. Industry associations are demanding at least ten more years of 2G operation, and the parallel termination of the MMS service on June 30, 2026 adds another layer of legacy standard pain. The tension between network modernisation and the interests of large corporate customers is palpable.

With the first-half results scheduled for August 6, investors will soon get a clearer view of how the record viewership, US dividend flows, and cost discipline from the union pact translate into hard numbers. Until then, the stock remains caught between a solid operational foundation — the ver.di deal ensures cost visibility through 2028, and the T-Mobile US dividend provides reliable income — and a chart that screams “overbought” as the shares drift toward their yearly floor.