1 week Ago
ROME (Reuters) - The Italian government opposes the CEO of STMicroelectronics, the economy minister said on Wednesday, as the Franco-Italian chipmaker faces a sustained downturn in its key automotive and industrial markets. "The behavior of the Italian shareholder will be one of criticism and opposition," Economy Minister Giancarlo Giorgetti told reporters during a press conference on Italy's multi-year budget framework. Rome is increasingly unhappy with STMicroelectronics Chief Executive Jean-Marc Chery and wants Paris to back an effort to replace him, an Italian official previously said.
The company, in which the Italian and French governments own a combined 27.5% share through a holding company, forecast a 28% drop in first-quarter revenue on January 30. Giorgetti said the government's position "reflects the behavior of management itself, which sold STM shares it held the day before reporting the negative results.
" The company, whose ADRs trade in the U.S., was hit with a proposed U.
S. shareholder class action lawsuit last year that alleged STMicro leaders misled investors between January 25 and July 24, 2024, by failing to accurately disclose a deterioration in the company's business. Chery and other insiders sold shares during that period, according to U.
S. regulatory reports. Italy also faces resistance over the appointment of Marcello Sala, a leading official at the economy ministry, as a member of STMicrolectronics supervisory board.
(Reporting by Giuseppe Fonte; Editing by Cynthia Osterman).
