In an interview with the French daily La Tribune, D'Escatha said talks had already begun with the European Aeronautic Defence and Space Companyand French state-owned engine maker Snecma, and other minority industrial shareholders.

"The presence of the state in the capital of Arianespace, at a level of 32 percent, is no longer necessary and can no longer be justified," D'Escatha said. "To what level will our shareholding fall? The decision, which belongs to the government, has not yet been taken."

He said the goal was restructuring the shareholder structure of the European commercial satellite launching company by the end of 2004.

"But if it is in our interest to move faster, we can accelerate our plans," he said.

D'Escatha said: "Several industrial groups have shown an interest in taking a larger (Arianespace) stake; it confirms that the enterprise has a strong future and real value."

Earlier this month, EADS confirmed it was interested in raising its Arianespace stake, currently at about 28 percent, to above 50 percent.

Arianespace and EADS signed a deal last week under which EADS will build 30 Ariane-5 launchers, enabling Arianespace to continue its satellite launch services. It transfered responsibility for rocket production to EADS in May.

Arianespace operates the launchers of the European Space Agency.

The ESA, which is institutionally separate from the European Union, comprises Austria, Belgium, Britain, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and Switzerland.

SPACE.WIRE