Facebook underwriters to get 1.1 pct fee -source

FILE - The Facebook logo is displayed on a computer screen. (REUTERS/Thierry Roge)

SAN FRANCISCO: Facebook will pay just a 1.1 percent fee to underwriters of its initial public offering, according to a source with knowledge of the company's plans, doling out a much slimmer than typical payout.

Sources had said the company's underwriters would swallow a fee much lower than the 6 percent to 7 percent that is typical on Wall Street, because of the prestige of being associated with Silicon Valley's largest ever IPO, as well as the promise of being bankers in future to the world's largest social network.
Facebook's underwriters include Morgan Stanley, J.P. Morgan, Goldman Sachs, Bank of America, Barclays and Allen & Co. Earlier this month, the company also named an additional 25 banks as underwriters.
The news was reported earlier by Bloomberg. Facebook could not be reached immediately for comment.





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