DUBLIN – *******’s competition watchdog says Ryanair must sell its shares in Irish rival Aer Lingus, but Europe’s dominant budget ******* has dismissed the ruling and vows to appeal.

The U.K. Competition and Markets Authority upheld its own April ruling that Ryanair’s nearly 30 per cent stake in its main Dublin-based competitor restricted Aer Lingus’ ability to take decisions. Ryanair became Aer Lingus’ largest shareholder as part of three hostile takeover bids following the 2006 privatization of the former state *******.

In Thursday’s judgment the lead investigator, Simon Polito, says the recent friendly takeover bid for Aer Lingus by British Airways parent IAG demonstrates Ryanair’s inappropriate influence over Aer Lingus – because IAG won’t complete its offer unless Ryanair accepts it.

Ryanair says it will appeal to the U.K. *************.