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KKR is set to present a non-binding offer to buy Telecom Italia’s fixed-line business, said people briefed about the matter.

The offer, which could be sent to the Telecom Italia board as early as Thursday, could unlock the stalemate over the debt-laden company’s future.

Recent discussions over Telecom Italia’s future have focused on spinning off its fixed-line network assets from its service operations, with the fixed-line business taking on most of the group’s €25.5bn debt and staff.

Multiple meetings between Italian government officials and Telecom Italia’s main shareholders have failed to reach a breakthrough because of differences in the company’s valuation and other sensitive issues such as staff and debt.

Italy’s new rightwing government coalition has championed a publicly-controlled network.

Italy’s state-backed investor Cassa Depositi e Prestiti, which owns a 10 per cent stake in Telecom Italia, recently expressed an interest in buying the fixed-line assets. But it disagreed over the company’s valuation with its largest shareholder, French media conglomerate Vivendi, said multiple people briefed on the talks.

Vivendi, which spent about €4bn to build its 24 per cent stake, faces a potential €3bn loss at Telecom Italia’s current market price. People briefed on the talks with CDP said Vivendi is seeking a valuation of €31bn to back the sale.

Read more about KKR’s Telecom Italia offer here.