Telecom Italia received two new non-binding offers for fixed network arm Netco following a competitive bidding process, with a decision on the proposals expected early next month.

The operator stated it received updated separate bids from a consortium formed by Italian state lender CDP Equity, Macquarie Infrastructure and Real Assets (Europe), along with a rival offer from US-based private equity company KKR.

The consortium in question had submitted an initial offer in early March following interest from KKR.

On the KKR bid, Telecom Italia stated at the time improvement was needed as it did not meet its valuation.

Telecom Italia’s board of directors will assess both offers during a meeting on 4 May, after preliminary investigations are held by a separate committee.

The operator shed more details on its plan to split its business into two units in July 2022. The move involves a spin-out of its domestic fixed access network into a separate company dubbed Netco, which also includes its submarine cable unit Sparkle and fibre business FiberCop.

Another unit, ServiceCo, incorporates Telecom Italia’s consumer, enterprise and Brazil businesses.

Telecom Italia explained the shake-up was designed to attract new partners and cut debt.

NetCo carried around €11 billion of net debt in 2022, which it wants to cut to below €5 billion.