Italy Opposes STMicro CEO Amidst Market Challenges
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)
