Liudolf, with Swabia. The next year Duke Henry II of Bavaria openly revolted against his Ottonian cousin Emperor Otto II, backed by Bavarian and Saxon nobles, and even obtained the support of Duke Boleslaus II of Bohemia and Mieszko I of Poland. Emperor Otto II had to struggle for his rule, finally in 976 he marched against the Bavarian capital Regensburg and declared Duke Henry II deposed. Duke of Carinthia Now the patient Luitpolding heir Henry the Younger finally gained some compensation, when the emperor took the occasion to rearrange the southeastern German territories. He severed the lands of the former March of Carinthia from Bavaria and Henry the Younger was enfeoffed with the newly established Duchy of Carinthia (as Henry I), including the rule over the marches of Styria, Carniola and Istria, as well as the Italian March of Verona (his father Berthold had already received the title of a Carinthian duke by King Henry I of Germany in 927). The scaled-down Bavarian duchy passed to the loyal Ottonian duke Otto I of Swabia, while Count Leopold of Babenberg was vested with the remaining Bavarian Margraviate of Austria. In 978 however, Henry the Younger himself was banned, probably because he now had joined the rebellion against Emperor Otto II in the War of the Three Henries, instigated by his predecessor the deposed duke Henry the Wrangler and Bishop Henry I of Augsburg during the emperor's campaign against Bohemia. Together with the forces of Duke Boleslaus II they occupied the Bavarian town of Passau, but were defeated by Otto's troops. At the Easter Imperial Diet of Magdeburg, the emperor deposed Henry the Younger and enfeoffed his Salian nephew Otto of Worms with the Carinthian duchy. All Southern German duchies — Swabia, Bavaria and Carinthia — then were held by the emperor's relatives. Later years and death Enfeebled by his defeat against the Sicilian Kalbids at the 982 Battle of Stilo, Emperor Otto II upon the death of Duke Otto I of Swabia and Bavaria recalled Henry the Younger from banishment in 983 and instated him as Bavarian duke (as Henry III) at the Imperial Diet of Verona. Nevertheless, his rule still remained contested by Henry the Wrangler and after the emperor died in the same year, Dowager Empress Theophanu on behalf of the succession of her minor son Otto III finally reconciled with him in 985. Duke Henry III had