UPDATE 2-French regulator widens EADS share trade probe-paper

(Adds further background on AMF inquiry)

PARIS, Oct 27 (Reuters) - France's AMF stock market regulator has decided to widen its probe into alleged insider dealing at European defence and aerospace group EADS (EAD.PA: Quote, Profile, Research, Stock Buzz), Le Monde newspaper reported on Saturday.

Le Monde said the AMF had extended its probe to examine whether EADS had deliberately put out "misleading information" to the stock market. Le Monde cited a source familiar with the matter for its report.

A spokeswoman for the AMF declined to comment on the report, while a spokeswoman for EADS France also declined comment.

The AMF has always said it was investigating both suspicions of insider trading and the company's financial communication.

An AMF official told a French newspaper earlier this month that the regulator would spend the next 6 months focusing mainly on the second stage of its investigation which involves an examination of the company's statements to financial markets.

A number of EADS executives including former co-Chief Executive Noel Forgeard exercised their right to sell stock options in March 2006 but the deals fell under the spotlight when EADS' planemaker unit Airbus announced serious production difficulties with the A380 superjumbo in June.

Another deal under examination is a move by French company Lagardere (LAGA.PA: Quote, Profile, Research, Stock Buzz) and Germany's Daimler (DAIGn.DE: Quote, Profile, Research, Stock Buzz) to reduce their stakes in EADS just before the Airbus problems came to light.

In April 2006, Lagardere and Daimler jointly announced they would each sell 7.5 percent of EADS as part of a strategic decision to lower their exposure. The move had been cleared by the French government.