KKR & Co. made a binding offer for Telecom Italia SpA’s phone network, in what could be a game-changing deal for the ex-monopolist looking to slash its €31 billion ($32.6 billion) gross debt pile.

Telecom Italia received KKR’s bid for its grid unit the phone carrier said in a statement Monday. KKR also set a non-binding offer for Telecom Italia’s Sparkle cable unit, according to the statement.

The US firm has valued the network at as much as €23 billion, including some earn-outs, people familiar with the matter said earlier.

Italian Prime Minister Giorgia Meloni has signaled that she considers Telecom Italia’s network a key asset that must retain a degree of public oversight, and the state has a veto over deals involving strategic assets.