Italy’s Parliament Rejects Opposition Amendments to Space Bill

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Italy’s parliament has rejected opposition amendments to a space bill that aimed to prevent the government from acquiring satellite services from non-EU companies, including those owned by U.S. tech billionaire Elon Musk. The amendments, proposed by the Democratic Party (PD), were viewed by some as attempts to limit competition in favor of European entities.

The draft bill, which still requires approval from both houses of parliament, outlines a framework in which Italy’s communications would be transmitted solely through satellites owned by operators based in the EU or the Atlantic Alliance (NATO). The goal is to ensure secure satellite communications for Italian diplomats and officials working in high-risk regions.

PD lawmakers sought to impose additional restrictions, proposing that Italy only work with non-EU satellite providers when absolutely necessary. They also pushed for exclusive Italian ownership and control over encryption and software and hardware components used in such services. However, the ruling coalition led by Prime Minister Giorgia Meloni opposed these amendments.

Among the companies that could potentially provide these satellite services is Starlink, a satellite internet service owned by Musk’s SpaceX. Starlink has been a key contender for securing the government contract. However, the PD has voiced concerns about working with Musk, a prominent ally of former U.S. President Donald Trump, describing the proposed deal as an “anti-Musk” move.

Andrea Stroppa, a representative for Musk in Italy, criticized the opposition’s stance, describing it as a “crusade” against the billionaire and warning that Starlink is not a “toy for politicians.” Additionally, other companies like Franco-British satellite operator Eutelsat (ETL.PA) have also been in talks with the Italian government regarding the secure communications contracts.

The rejection of the amendments has sparked debate, with PD lawmaker Andrea Casu calling for better guarantees regarding the use of public funds, especially when foreign companies are involved.

Allegro MicroSystems Rejects Onsemi’s $6.9 Billion Takeover Offer

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Allegro MicroSystems (ALGM.O), a semiconductor solutions provider, has rejected a $6.9 billion takeover offer from Onsemi (ON.O), deeming the proposal “inadequate.” Onsemi’s offer of $35.10 per share, made public on Wednesday, was seen as insufficient by Allegro’s board, which had previously turned down an offer from Onsemi priced at $34.50 per share.

Allegro, based in New Hampshire, confirmed it had received the offer in February and after careful review, decided to reject it. The company did not elaborate further on the rejection. Onsemi, for its part, did not respond to requests for comment on the matter.

Onsemi’s bid came as part of its strategy to weather the ongoing slump in automotive chip demand, but Allegro, which supplies power management systems for both electric vehicles (EVs) and traditional vehicles, is expected to avoid the same market weakness. Allegro has also recently appointed Mike Doogue as CEO, with expectations that the company will return to revenue growth following nearly five quarters of decline, according to data from LSEG.

Onsemi had planned to fund the acquisition through a mix of committed financing, cash, and a revolving credit facility. The offer represented a 31% premium over Allegro’s closing stock price on Wednesday. Allegro’s shares had surged 22% earlier in the week following reports of Onsemi’s interest in a takeover.

With a market capitalization of approximately $4.93 billion, Allegro remains an attractive target for potential acquirers despite rejecting the current offer.

Intel Wins Lawsuit Over Foundry Losses, $32 Billion Market Drop

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Intel has successfully defended itself against a shareholder lawsuit that accused the company of fraudulently hiding issues within its foundry business, which led to significant financial losses and a $32 billion drop in market value in a single day. The lawsuit stemmed from Intel’s failure to immediately disclose a $7 billion operating loss in its foundry business for the fiscal year 2023, which wasn’t revealed until April 2024.

U.S. District Judge Trina Thompson, in a decision made public on Tuesday, dismissed the claims, ruling that shareholders had incorrectly linked the $7 billion loss to Intel’s Foundry Services business. The judge further noted that statements made by former CEO Patrick Gelsinger regarding the company’s “significant traction” and “growing demand” for its foundry services were not misleading, as they referred to specific customers, not the overall revenue, which had been declining.

The lawsuit had accused Intel of inflating its stock price from January 25 to August 1, 2024, during which time the company posted a quarterly loss of $1.61 billion, announced layoffs of more than 15,000 employees, and suspended its dividend to save $10 billion in 2025. As a result, Intel’s stock price dropped by 26% the following day, causing a loss of $32 billion in market capitalization.

The Santa Clara-based company, which has faced growing competition from chipmakers like Nvidia, AMD, Samsung, and TSMC, has struggled to capitalize on the artificial intelligence boom. Intel ousted Gelsinger as CEO in December.

The case, titled In re Intel Corp Securities Litigation, was filed in the U.S. District Court for the Northern District of California.