Luxembourg plans to form a satellite company.

The Luxembourg government will create the new multinational company next month with the aim of launching a European communications satellite in mid-1986, a government spokesman said. A number of firms already have agreed to participate in the project, which will beam up to 16 channels over most of Europe. None will be able to take more than a 10% share, thus assuaging fears that the company could become dominated by any single firm, particularly a U.S. corporation.