A Deutsche Telekom plan to merge with its subsidiary T-Mobile US reportedly hit an obstacle, prompting the German operator to decide against making a formal offer for now.

Bloomberg reported Deutsche Telekom faced opposition from its works council and trade unions, which the news outlet stated account for 50% of supervisory board seats.

The news outlet reported Deutsche Telekom was interested in a merger in April. It became the majority stakeholder in T-Mobile US in 2024 and now has close to a 53% stake.

Bloomberg noted Deutsche Telekom could still bring an offer later.

Last month, Bloomberg reported activist investor Elliott Investment Management was pressing Deutsche Telekom to drop the plan, having “built a sizeable stake” in the company.

Deutsche Telekom steadily accumulated T-Mobile US shares in recent years and its former German unit chief Srini Gopalan is now CEO of the latter.

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