Principality of Taranto
Henry offered Sibylla generous terms: William was to retain the County of Lecce, the home territory of his father before he had become king, and was also to retain the Principality of Taranto in turn for renouncing the royal crown. With that agreement reached, William, his mother and his sisters watched while Henry was crowned King of Sicily on December 25 (Constance was not crowned due to being in labour with Henry's son Frederick II in Iesi). Nevertheless, four days later, an alleged conspiracy against the new king was uncovered, and many of the leading Italo-Norman political figures were arrested and sent to prison in Germany, including William and his family.