* Shares price at 220 pence
* Price range had been cut to 220-250p
* Investors balk at valuation
* Third issue in Europe to land in trouble in two weeks
(Adds final price)
By Chris Vellacott
LONDON, Dec 11 (Reuters) - British fund manager Gartmore cut the price range on its planned initial public offering (IPO) on Friday, the third European share sale to land in trouble this month.
Gartmore said it sold its shares for 220 pence apiece after being forced to lower its price range to 220-250 pence. A banking source close to the deal said this was to attract long-only investors and avoid speculative funds who might drive the shares down quickly.
"The quality of the bid was pretty poor, which is why they had to cut it. I still think they are going to struggle ... it does not look particularly cheap," a head of equities at a large British fund house said, asking not to be named.
Gartmore had said earlier in the week the offer had been fully covered and the fact it had to lower its price means millions of pounds less in windfalls for a small group of senior managers.
The share sale gave the group an overall market value of 676 million pounds ($1.10 billion).
Europe's IPO market has lagged Asia and the Americas and the last two weeks saw high-profile failures as German builder Hochtief cancelled a listing for its Concessions unit, while Danish wind and solar park developer Scan Energy pulled its flotation.