PARIS, June 19 (Reuters) - France will increase its

stake in Eutelsat and subscribe to half of the satellite

company's capital increase of 1.35 billion euros ($1.55

billion), the finance ministry said on Thursday.

The deal is expected to help shore up Eutelsat's finances as

it seeks to fund its second generation of low Earth orbit

satellites and better compete with Elon Musk's Starlink.

($1 = 0.8721 euros)