Thales and Safran in asset swap talks- newspaper

PARIS (Reuters) - French defence groups Thales (TCFP.PA) and Safran (SAF.PA) are in talks to swap some assets to cut duplication, Les Echos newspaper said on Friday.

The assets are relatively small activities such as optronics or inertial navigation systems.

Citing a source close to the discussions, the newspaper said that the talks had the blessing of Dassault Aviation (AVMD.PA), the maker of fighter and business jets.

Dassault is in exclusive talks with Alcatel-Lucent (ALUA.PA) to acquire the latter's 20.8 percent stake in Thales.

Safran is 30.4 percent owned by the French state which also has a 26.5 percent stake in Thales.

A Safran spokeswoman said such an asset swap was "part of our considerations" while an executive at Thales said the newspaper report was "speculative."

He said Thales fully supported efforts by Dassault (AVMD.PA) to become the company's largest private shareholder.

"Dassault is already a shareholder in Thales and we consider this movement friendly and we support it totally," Reynald Seznec, chief executive of Thales Alenia Space, said at a briefing for reporters.

Seznec said the move would not affect Thales Alenia Space, 67 percent owned by Thales and 33 pct by Finmeccanica (SIFI.MI).  Continued...