(Bloomberg) -- Private equity giant KKR & Co. submitted an expression of interest for a minority stake in Telecom Italia SpA’s landline network, people familiar with the matter said, in a move that could allow the ex-phone monopoly to achieve the long-planned spinoff of part of its grid.

KKR may buy as much as 49% of the landline unit, which could be valued at 7 billion to 7.5 billion euros ($8 billion), the people said.

Telecom Italia shares rose as much as 2.5% in Milan trading, reversing earlier losses.

Telecom Italia will also team up with KKR in an attempt to buy wholesale-fiber carrier Open Fiber SpA, they said, asking not to be named because the discussions aren’t public.

Chief Executive Officer Luigi Gubitosi plans to discuss KKR’s informal offer at Telecom Italia’s board meeting Feb. 27, the people said.

Bloomberg News last week reported that KKR was open to purchasing a minority holding in Telecom Italia’s so-called secondary network of copper and fiber lines running from street cabinets to premises.

The plan, which calls for the creation of a separate unit for grid-related assets, signals a return by Telecom Italia to the long-discussed idea of partially spinning off its network. The grid unit would be still controlled by the Italian phone giant, the people said.

Gubitosi has since last year been weighing enlisting international funds to help finance a potential network deal with Open Fiber, and to then allow that company to invest in the Telecom Italia landline grid, people familiar with the matter said at the time.

Gubitosi is also looking to boost demand for premium services, work with rivals on network investments to cut costs and spin off non-core assets.

Spokespeople for Telecom Italia, KKR and Open Fiber declined to comment.

(Updates with share price in third paragraph.)

To contact the reporter on this story: Daniele Lepido in Milan at dlepido1@bloomberg.net

To contact the editors responsible for this story: Tommaso Ebhardt at tebhardt@bloomberg.net, Jerrold Colten, Jennifer Ryan

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