Direct Line shares trade within proposed price range in grey market

Royal Bank of Scotland shares are the leading faller in the FTSE 100, and its soon to be floated insurance business Direct Line is not setting the world alight in the grey market either. RBS is down 7.4p at 259p, following a downgrade by UBS from buy to neutral, as well as concerns about the eurozone crisis. As part of an agreement with the EU, the bank has to sell Direct Line by the end of 2014. An initial tranche is being offered this month at between 160p and 195p, valuing the business at around £2.6bn, lower than the £3bn analysts had been expecting. Dealings are due to start on 11 October. But ETX Capital has set up a grey market listing and the current spread is 179p to 189p, below the top end of the price range albeit up from the initial indication of 177p to 187p as buyers emerge.