UPDATE 1-Poland may cede control of refiner Lotos - report

WARSAW, Jan 13 (Reuters) - Poland may cut its stake at No.2 refiner Lotos below 50 percent and cede control of the company, the deputy treasury minister was quoted as saying on Wednesday.

'We are looking into a possibility of going below 50 percent and selling the controlling stake to an investor,' Mikolaj Budzanowski told Puls Biznesu.

The treasury ministry was not available for immediate comment.

Previously the ministry said it was willing to sell a 13 percent stake at the refiner, bringing its holdings to 51 percent, but stressed it would keep control of the company.

The ministry would prefer to sell the stake to a partner with experience and know-how in the oil exploration and extraction business allowing Lotos to have access to the oil fields or know-how.

Lotos shares have risen in value by two and a half times over the last year and closed at 31.9 zlotys on Wednesday.

(Reporting by Patryk Wasilewski; Editing by David Cowell and Erica Billingham) Keywords: LOTOS/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.