Current and former Aer Lingus employees who hold shares through the Employee Share Ownership Trust Limited (Esot) have overwhelmingly voted to reject Ryanair's offer for the company.
There was a 97 per cent vote to reject the offer. A total of 3,224 members, representing 70 per cent of the total membership, voted in the ballot, which closed at noon today.
The Esot owns 12 per cent of the shares in Aer Lingus.
Ryanair, which has a 19.2 per cent stake in Aer Lingus, has already indicated that it does not believe its bid can succeed without the support of the Esot.
In a letter sent to Aer Lingus shareholders yesterday Ryanair chief executive Michael O'Leary strongly criticised the Aer Lingus board and some of its members, including chief executive Dermot Mannion and Seán Fitzpatrick, chairman of Anglo Irish Bank.
The letter questions the amount of shares both men have purchased in Aer Lingus, as well as chief financial officer Greg O'Sullivan. Ryanair points out that all three men purchased less than €21,000 worth of shares each .
Ryanair also ruled any increase in its €2.80 a share offer for Aer Lingus.
The Siptu and Impact trade unions, who represent the majority of Aer Lingus workers, have welcomed the result of the ballot.
"The bid by Ryanair held nothing for the workers, the consumers or the airline, and its defeat is a rejection not only of Ryanair's employment practices but is a victory for common sense and consumer choice," said Siptu national industrial secretary, Michael Halpenny.
Impact - which represents Aer Lingus cabin crew, pilots and middle managers - said Esot members were right to reject the takeover.
"I doubt if they would have voted for Michael O'Leary as boss at any price," said Bernard Harbor, an Impact spokesperson.
Mr O'Leary has sold 2.5 million shares in Ryanair, a stock exchange statement showed today. Yesterday's sale of shares in the airline at €9.70 each was worth almost €24.3 million.
Mr O'Leary still holds 32,500,008 shares in Ryanair that amount to 4.2 per cent of the airline and were worth $315.9 million based on yesterday's closing price of €9.72.