[1] On 6 July a convoy of four merchant ships left Naples on their way to Benghazi, while attempting to fool the Allies into thinking they were making for Tripoli.
That evening two torpedo boats from Catania and another freighter met them off Messina and the next day their escort force joined the convoy from Taranto after being informed that the Allies had recently left port in Alexandria.
Finally, the main battle group consisted of two battleships (Giulio Cesare and Conte di Cavour), eight light cruisers and another 16 destroyers.
[2] A substantial number of the Italian destroyers didn't take part in the battle due to mechanical problems and the need to refuel.
The fleet sailed from Alexandria bound towards Malta where the destroyers would deliver supplies and a limited number of specialist reinforcements.
Comando Supremo (Italian Supreme Command) was reluctant to risk its warships in a night action and they ordered the fleet to avoid contact.
Unlike the dive-bombers favoured by the Germans, Italian bombers operated in formations at high altitudes during the early stages of the war, about 12,000 ft (3,700 m).
Campioni told his fleet to scramble by 14:00 about 60 nautical miles (110 km; 69 mi) south east of Cape Spartivento in search of the British.
[7] At 13:10, the Italian Supreme Command had instructed Campioni to engage one of the two enemy forces facing him, but in fact they had planned to keep the action close to Italy and were deliberately moving north in order to draw the Allies closer to their airbases.
However, by 15:22, the Italian fire came dangerously close to the Allied cruisers and Vice Admiral John Tovey decided to disengage.
[12] At this point splinters from a 6-inch (152 mm) shell fired by the cruiser Giuseppe Garibaldi hit HMS Neptune, damaging her catapult and the reconnaissance aircraft beyond repair.
Once again the Allied rounds fell short, and neither of her targets, Alberico da Barbiano and Alberto di Giussano, received any damage in the initial salvos.
During the exchange one of Giulio Cesare's rounds fell long and caused splinter damage to Warspite's escorting destroyers Hereward and Decoy, which had formed up on the far side of the action.
[a] It would appear that Warspite was in an excellent position to deal some serious blows to the slowing Giulio Cesare, but she once again executed another tight turn to allow Malaya to catch up.
There is some debate about this point today, the Allied position being that the battleships were leaving battle, the Italian that they were attempting to make a torpedo attack with their destroyers from within the smoke.
Firing continued as both groups attempted to form up and at 16:07 Bolzano was hit three times by 6-inch shells from HMS Neptune, temporarily locking her rudder and causing two fatalities in the torpedo room.
[26] One final victim was the destroyer Leone Pancaldo, sent to Augusta in Sicily, which was hit by a torpedo launched from a Swordfish at 09:40 the next day and sank in shallow water.
This allowed the Italians to claim a victory of sorts, as their cargo ships were already past the action by this time and sailed safely for Libya.
Although the battle was indecisive, Allied sources claimed that the Royal Navy asserted an important "moral ascendancy" over their Italian counterpart.
Cunningham dismissed the Royal Sovereign as a "constant source of anxiety", and asked the Admiralty for two or three more Queen Elizabeth-class battleships, possibly equipped with radar, a new carrier with an armoured deck, the heavy cruisers York and Exeter, and enough smaller ships to cover the major units.
[33] Overall, Allied gunnery proved superior, while the Italian salvos were too widely dispersed due to technical reasons that were not to be overcome until the end of the conflict.