Hapsburg or Angouleme Milan

After the death of Henri III of France the French claim to the duchy of Milan died out. I was just wondering about who the claim would go to? Elisabeth de Valois' eldest daughter Isabella and thereafter to the dukes of Savoy, or the duc d'Angouleme - bastard son of Charles IX?

While Isabella is legitimate she's also female, and Angouleme (while male) was a bastard. And why didn't Philip II make Albert and Isabella duke and duchess of Milan instead
 
If the claim do not die out Isabella is the heiress but the Duchy of Milan is an Imperial feud and was assigned from Emperor Charles V to his son Philip (II of Spain). Giving this to Isabella and Albert is almost impossible (require an inversion of Imperial politic of Maximilian I, Charles V and Ferdinand I and an assignment to a rich country who do not give many trouble to Spain to a female sovereign). Giving them Netherlands is much easier and secure (if their line die out the Netherlands will return to Spain automatically)
 
Interestingly as Isabella would die childless the French claim to Milan would pass to her sister and ultimately her son Victor Amadeus Duke of Savoy.
 
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