Deutsche Telekom: Short Sellers Retreat as Holding Plan Sparks Boardroom Battle
Published on 07/13/2026 at 09:42 | Redaktion boerse-global.de
The past few weeks have painted a picture of contradiction at Deutsche Telekom. While short sellers have been fleeing the stock at a remarkable pace, a simmering controversy over the company’s future structure is drawing sharp criticism from some of its biggest shareholders — and even from the German government, which controls roughly 28 percent of the shares.
Short interest in the OTC-traded DTEGY shares has collapsed. As of June 30, just 200,804 shares were held short, a plunge of 67.5 percent from 617,318 in mid-June. The resulting short-interest ratio has dwindled to a mere 0.1 days, suggesting bearish bets are being unwound aggressively. The retreat may partly reflect the second-quarter revenue surprise: turnover reached $34.97 billion, well above the consensus forecast of $33.14 billion. Yet earnings per share came in at $0.62, missing the $1.07 expected, and the company’s full-year 2026 EPS guidance stands at $2.54. Analysts remain cautious — the OTC-traded stock carries a “Hold” consensus based on one buy and two hold ratings, with a price-earnings ratio of 14.27.
At the same time, a proposal first reported by the Neue ZĂĽrcher Zeitung on July 11 has rattled the investor base. Management is reportedly exploring the creation of a holding company that would sit above both Deutsche Telekom and its U.S. subsidiary T-Mobile US, a move designed to narrow the valuation gap between the two listed entities. Shareholders were quick to push back. Jens Ehrhardt of DJE Kapital and Martin Wirth of FPM both voiced opposition, and an unnamed top-30 investor warned that the plan could jeopardize the entire market value of the group. The German government, as anchor shareholder, has also signaled skepticism. Deutsche Telekom has so far declined to comment on the speculation.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Despite the political and shareholder headwinds, the stock has shown some resilience. The Xetra-listed shares gained 3.40 percent on Friday to €26.15, then edged up to €26.22, bringing the weekly advance to 2.59 percent. The bounce lifted the price above the short-term 20-day moving average, but the broader technical picture remains shaky. At €26.22, the stock still trades 4.17 percent below the 50-day line of €27.36 and 8.79 percent under the 200-day average of €28.75. From its February 52-week high of €34.35, the shares are down nearly 24 percent. On a monthly basis, the stock is off 7.68 percent, and it has lost 5.92 percent since the start of the year.
Helping to underpin the share price is an ongoing buyback program. In the first week of July alone, Deutsche Telekom repurchased roughly 908,705 shares on Xetra for about €22.5 million at an average price of €24.74. The company has earmarked up to €2 billion for buybacks this year, a cushion that should continue to provide support in the weeks ahead.
Meanwhile, on the operational front, Deutsche Telekom is rolling out a bundled sports streaming offer designed to lock in customers. The “MegaSport” option, available for €59 per month until September 30, 2026, combines WOW Live-Sport, DAZN Unlimited, and MagentaSport — services that would cost €78.94 if purchased separately. The bundle saves subscribers €19.94 monthly, or €239.28 per year. After twelve months the price climbs to €85, though the standalone cost of the three services would then be €105.93. In a separate development, the company awarded Mavenir its 2026 Partner Award for Best Network Innovation, citing the MeeC initiative, which aims to reduce 5G core network energy consumption by up to 65 percent during low-traffic periods.
With T-Mobile US set to report second-quarter results on July 23, the stock now appears caught between opposing forces: the failed short thesis and a revenue beat that argue for recovery, and the unresolved governance battle — pitting influential investors and a skeptical government against management’s structural ambitions — that could weigh on sentiment. The buyback and a modest technical bounce offer near-term ballast, but until the holding plan debate is settled, the path higher remains uncertain.
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