Deutsche Telekom closed Friday at €29.26, barely moving on the day but capping a 5.6% weekly advance that triggered a “Turtle Trading” long signal around the €29.55 resistance level. That technical breakout arrives just as the company navigates two game‑changing events: a potential $400bn all‑share merger with T‑Mobile US and an escalating wage conflict with the ver.di union that has now spread to key subsidiaries.
A $400bn Bet and Berlin’s Blocking Minority
Behind the scenes, the board is reportedly exploring a full fusion of its US unit T‑Mobile US — a deal that, if executed via a pure equity swap, would create a transatlantic telecom giant valued at up to $400bn. The catch is political. The German government, together with state‑owned KfW, holds roughly 28% of Deutsche Telekom’s shares. Any stock‑for‑stock combination would dilute that stake to an estimated 17‑18%, dropping it below the 25% blocking‑minority threshold that Berlin has long treated as sacrosanct for strategically important companies. A veto from the capital remains a real risk, and analysts are watching the 26 May wage talks as an early test of the company’s capacity to handle multiple high‑stakes negotiations simultaneously.
Labour Front Expands as Strikes Hit T‑Systems and Services Europe
The wage dispute itself is intensifying. ver.di, which is demanding a 6.6% pay rise, rejected the employer’s initial offer as wholly inadequate. Tens of thousands of workers have already walked out, and for the first time the union has called on employees at T‑Systems and Deutsche Telekom Services Europe to join solidarity strikes. That escalation piles pressure on management, disrupts customer service and slows fibre‑optic rollout — adding operational risk to an already packed agenda.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Buyback Engine and Technicals Provide a Floor
While these headline risks dominate, a €2bn share‑buyback programme is quietly absorbing supply. Between 1 April and 12 May, the group purchased around 8m shares for roughly €200m, and at the end of April it cancelled 55.4m shares from the 2025 programme. That structural support helps explain why the stock has held up during recent turbulence. The “Turtle” long signal — based on new‑high breakouts — points to €29.55 as the immediate level to watch, though the relative‑strength index at 69.6 is brushing the classic overbought threshold of 70, limiting near‑term upside.
Solid Q1 Lifts Full‑Year Outlook
Underpinning the share price is a robust operational performance. In the first quarter of 2026, organic revenue rose 4.7% to €29.9bn, while adjusted EBITDA AL climbed 7.5% organically to €11.5bn. Management responded by raising its full‑year guidance: it now expects adjusted EBITDA AL of roughly €47.5bn and free cash flow AL above €19.8bn. Goldman Sachs, with a €40 price target, remains among the most bullish on the Street.
Roadmap Ahead: Wage Talks Tuesday, Q2 in August
The immediate focus falls on the decisive round of wage negotiations starting 26 May. A settlement by mid‑week would remove a short‑term overhang; failure risks indefinite strikes. Beyond that, the next scheduled catalyst is the second‑quarter earnings release on 6 August, which will provide fresh clarity on whether the buyback, the merger potential and the operational momentum can outweigh the twin clouds of labour unrest and political uncertainty. For now, the stock sits 14.6% below its 52‑week high of €34.25 and just under its 50‑day moving average of €29.79 — a reminder that, despite the technical signal, the path to new highs is far from clear.
Ad
Deutsche Telekom Stock: Buy or Sell?! New Deutsche Telekom Analysis from May 24 delivers the answer:
The latest Deutsche Telekom figures speak for themselves: Urgent action needed for Deutsche Telekom investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from May 24.
Deutsche Telekom: Buy or sell? Read more here...
