Aer Lingus has asked its shareholders to resist Ryanair's takeover bid, which is valued at 700 million euro or $ 880 million.

Aer Lingus and Ryanair, both believe that the deal is unlikely to be approved by the European regulators in a decision that is expected to be announced by Wednesday. The companies believe that the matter will move to the Phase II process that can continue to hold for as long as 105 working days, delaying the possible deal to the next year.

Ryanair has assured European regulators that there are radical remedies to address the concerns relating to lower competition. On the other hand, Aer Lingus indicated that the deal is headed for a failure. Ryanair already owns 30 percent of Aer Lingus.

“Ryanair's offer is not in the interests of shareholders, fundamentally undervalues the business and is likely once more to be prohibited by the European Commission. The board re-affirms its recommendation that shareholders should reject the offer,” Aer Lingus said in a statement to shareholders.

This is Ryanair's third attempt to take-over the former state carrier. Ryanair's 2007 attempted takeover of Aer Lingus was blocked by EU executive as it was believed that the joint entity would create a monopoly. Ryanair had scrapped its second takeover bid for the airline in 2009.

The shares of Aer Lingus have risen 14 euro cent to 1.08 since since Ryanair launched its takeover bid in the month of June 2012.