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Twitter squeezes underwriters on IPO: Reports

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Twitter has negotiated some unusually favorable terms with the banks that will take it public, according to published reports.

Banks will collect 3.25 percent of the money raised for fees, people familiar with the deal told The Wall Street Journal. Bloomberg News first reported the arrangement on Thursday.

This would be the smallest percentage paid on an IPO listed in the U.S. in more than a year, according to Ipreo, a capital-markets data firm.

(Read more: Twitter: Forget IPOvalue, what's the data worth?)

"The Facebook IPO presented a nice playbook for Twitter," Craig Orchant, a partner at EA Markets LLC,told the Journal. "In a sector with significant IPO and corporate finance activity like social media, top banks feel they can't afford to lose."

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