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Facebook Said to Pay Underwriters 1.1% Fee in Initial Offering

Facebook Inc., the social-networking website seeking to raise $5 billion in an initial public offering, will pay underwriters a 1.1 percent fee, two people with knowledge of the company’s plans said.

The fee will be shared among Facebook’s underwriters, said the people, who asked not to be named because the details are private. Facebook has hired 31 banks to manage the IPO, including Morgan Stanley as lead underwriter. The lead bank typically earns a bigger cut of the total.