Union Vote Looms as Deutsche Telekom’s €2bn Buyback Fails to Support Shares
15.06.2026 - 14:26:16 | boerse-global.de
A Wednesday ballot on a new collective wage agreement is shaping up as the most concrete near-term catalyst for Deutsche Telekom’s equity, which continues to drift lower even as the company ploughs ahead with a €2bn share repurchase programme. The so-called “lifeline” of heavy corporate buying has so far done little to arrest a slide that leaves the stock down roughly 10% on a year-to-date basis.
The buyback, launched in early April with a second tranche, saw the group snap up around 1.58 million shares worth €45m in the first week of June alone, followed by another €27m in the following week. By early June, Deutsche Telekom had accumulated nearly 13.7 million of its own shares, the vast majority destined for cancellation. Yet the buying pressure has failed to stem the decline: the stock traded at €27.96 on Monday, a 1.31% daily loss, and remains firmly below the 200-day moving average of €28.99. The Relative Strength Index sits at 44, indicating neutral-to-bearish territory.
That technical weakness contrasts with the otherwise solid operational backdrop. In the first quarter, organic revenue advanced 4.7% to €29.9bn, while adjusted EBITDA AL rose 7.5% to €11.5bn. Management responded by lifting its full-year targets, now forecasting adjusted EBITDA AL of roughly €47.5bn and free cash flow AL above €19.8bn for 2026. Second-quarter results are due on 6 August.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
But the more immediate event is this week’s vote by ver.di union members on the pay deal hammered out in late May. The agreement, which runs for 33 months until the end of 2028, covers around 60,000 employees. Under its terms, the additional monthly payment (“zusätzliches Monatsentgelt”) rises in two steps: from €190 to €340 in August 2026, then to €480 in July 2027. Salary tables will then increase by 2.4% in June 2028. Apprentices and dual-study trainees will see three increases totalling 4.1%, 3.3% and 2.4% — equal to monthly raises of up to €165. Crucially, compulsory redundancies are ruled out for the entire term.
The ver.di tariff commission has already backed the package unanimously and recommends acceptance. The final decision rests on the member ballot, whose result will be announced on 19 June. A “yes” vote would give management cost visibility through to 2028, a factor that directly influences analysts’ earnings models. The stock closed last Friday at €28.33, barely a percentage point below its 50-day average, with an RSI of 48.1 — no clear directional signal. Until the ballot outcome lands, the share price looks set to remain caught between the support of a generous buyback and the uncertainty of what is now the calendar’s most closely watched date.
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