The Polish government is in talks with EADS to buy a stake of between 1-2 per cent in the European aerospace and defence group, a Polish newspaper cited the defence ministry as saying yesterday.

"It is difficult to say whether such a solution would be beneficial for us, but we are considering it," the Dziennik Gazeta Prawna daily quoted Jacek Sonta, spokesman for the ministry of national defence, as saying.

EADS is owned by France and Germany with 12 per cent each and Spain at 4 per cent, with the rest on the market.

State influence in EADS was curbed under corporate changes this year, and people familiar with the company say any Polish government stake would only convey normal dividend and voting rights.

Buying a 2 per cent share in EADS would cost Poland roughly $1 billion. – (Reuters)