Speaking on French LCI television channel, Thales chief executive Denis Ranque said a European naval tie-up involving Thales would be a "good prospect", adding "we have to advance in this direction."

European consolidation in the field of electronics and aeronautics has reached a ceiling dominated by EADS, Thales and BAE Systems of Britain, he said.

But in the naval and land-based weapons sectors, "restructuring has not begun at all," he noted.

He stood by previous comments that Thales had not made an offer to buy German shipyard Howaldtswerke Deutsche Werft (HDW), despite being touted as a possible bidder.

Regarding the French government's 31.8-percent stake in Thales, he said: "If the state wants to sell, it can do so because Thales can fend for itself."

SPACE.WIRE