Al-Jaber won't buy AUA shares in cap hike -source

VIENNA, Sept 8 (Reuters) - Saudi investor Mohamed Bin Issa al Jaber will not buy Austrian Airlines (AUAV.VI) shares in a rights issue of the carrier launched two weeks ago, a source with knowledge of the situation said on Monday.

Austrian Airlines' share issue was part of a deal under which al Jaber would have bought 20 percent of Austrian Airlines but which collapsed earlier this year. Austrian Airlines launched the issue it anyway to honour its part of the deal. The subscription period for the capital increase ends on Monday at 1000 GMT. (Reporting by Alexandra Schwarz, writing by Boris Groendahl)