PARIS, July 15 (Reuters) - European aerospace groups

Airbus and Thales are exploring a tie-up of

at least part of their space activities, two industry sources

said, confirming a report by French business paper La Tribune.

The sources said the preliminary talks were focusing on the

groups' satellite activities. Both companies declined to

comment.

"They are thinking about this seriously," one of the

sources said, asking not to be identified.

Shares in both companies rose fractionally in early trading.

Facing fierce competition, European space companies are

under pressure to streamline a field marked by high expenditure

and a strong dependence on government contracts.

La Tribune, citing unnamed sources, said the two groups have

launched "low-key discussions that are exploratory in nature".

Airbus Defence & Space and Thales Alenia Space, in which

Italy's Leonardo holds a minority stake, are Europe's

largest makers of satellites for telecommunications, navigation

and surveillance.

The discussions emerged weeks after Airbus took a 900

million euro ($980.37 million) charge for its struggling

satellite services business, on top of 500 million euros last

year.

Airbus CEO Guillaume Faury last month told analysts that the

company was "evaluating all strategic options" for its space

business including restructuring, co-operation, a portfolio

review and potential merger and acquisition options.

($1 = 0.9180 euros)