(LUXEMBOURG) - A European court on Wednesday rejected a request by Irish Airline Aer Lingus to prevent low-cost rival and major shareholder Ryanair from exercising its voting rights in the company.

Aer Lingus is seeking to force the larger Ryanair to sell its 29.4-percent stake in the former Irish flag-carrier following a failed takeover bid.

Aer Lingus had lodged a request for interim measures to prevent Ryanair from exercising its voting rights with the European Court of First Instance.

However the court ruled that Aer Lingus failed to show such action was required "as a matter of urgency so as to avoid serious and irreparable harm.

"The assertions put forward by Aer Lingus that Ryanair can use its shareholding to cause serious and irreparable harm to Aer Lingus are largely hypothetical and unsubstantiated statements," the court said in its ruling.

Ryanair launched its takeover bid in October 2006, just days after the former Irish flagship was partly floated on the London and Dublin stock exchanges.

However, the bid faced stiff opposition from other major Aer Lingus shareholders, including the Irish government, company employees, pilots and their pension fund.

In December 2006, Ryanair withdrew its takeover bid after European regulators launched an in-depth competition probe.

The European Commission vetoed the takeover on the grounds that the merger of Ireland's two biggest airlines would have given the combined carrier a crushing grip on 35 routes.

The Commission, the EU's executive arm, then rejected an Aer Lingus request to order Ryanair to divest itself of its shareholding.

Therefore in November, Aer Lingus appealed the commission's decision in the European court, also seeking the interim measure to make Ryanair refrain from exercising its voting rights pending the outcome of the case.

The Luxembourg-based court will deliver final judgment on the substance of the case at a later date.

An appeal against the decision, on points of law only, may be brought before the EU's highest court, the Court of Justice.

Order of the President of the Court of First Instance in Case T-411/07 - Aer Lingus Group / Commission

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