Austrian Airlines Saudi stake deal dropped-report

VIENNA, May 3 (Reuters) - A Saudi-Austrian investor has pulled out of a deal to buy a stake in Austrian Airlines (AUAV.VI: Quote, Profile, Research, Stock Buzz), an Austrian magazine reported on Saturday.

The airline's main shareholder, state holding company OeIAG, had agreed terms in March for Sheikh Mohamed Bin Issa al Jaber to take a stake via a capital increase.

But Profil magazine, citing a lawyer's letter, said he had pulled out of the deal on April 30. The magazine said the stake would have been worth 150 million euros ($232 million).

Austrian Airlines has a market capitalisation of around 350 million euros.

Neither OeIAG nor the airline could be reached for comment. (Reporting by Sylvia Westall; editing by Paul Bolding)