UPDATE 1-TUI Travel takes 9.9 pct stake in Air Berlin

* Buys 8.4 million Air Berlin shares

* Air Berlin shares end down 4 pct, TUI Travel down 1 pct

FRANKFURT, Oct 26 (Reuters) - TUI Travel Plc (TT.L) and Air Berlin (AB1.DE) moved closer together, as a unit of Europe's largest tourism company acquired almost 10 percent of Germany's second-biggest airline as part of a broader link-up.

TUI Travel's Leibniz-Service GmbH bought 8.4 million shares in Air Berlin on Oct. 20 and now holds 9.9 percent of Air Berlin's voting rights, Air Berlin said on Monday.

Air Berlin and TUI Travel's German carrier, TUIfly, scrapped initial plans for a cross-shareholding in September, while still pursuing a planned takeover of TUIfly's city carrier business by Air Berlin. [ID:nL764469]

Air Berlin had said at the time that TUI Travel would either acquire a 9.9 percent stake in the carrier or pay compensation of 15 million euros ($22.56 million) for the deal.

Shares in Air Berlin, the No. 2 airline in Germany after Deutsche Lufthansa (LHAG.DE), ended the trading day down 4.1 percent at 3.55 euros, while TUI Travel shares closed down 1.2 percent. ($1=.6650 Euro) (Reporting by Eva Kuehnen)