By Cara Lombardo 

Qualcomm Inc. said while it is open to further discussions with Broadcom Ltd. it remains against the company's "best and final" takeover offer because it still undervalues the business and doesn't adequately account for the risk of the deal falling through.

In a Friday letter to Broadcom Chief Executive Hock Tan, Qualcomm Chairman Paul Jacobs said it was encouraged that Broadcom representatives in a Wednesday meeting expressed a willingness to agree to certain potential antitrust-related divestitures beyond those in the company's publicly filed $121 billion proposal.

But Broadcom representatives seemed to resist other commitments that regulatory bodies are likely to require, Mr. Jacobs wrote. They declined to clarify their plans for Qualcomm's licensing business and sought to control that business between striking a deal and completing it, which may violate antitrust laws, he wrote.

Mr. Jacobs also said the current $8 billion breakup fee is inadequate to protect Qualcomm against the risk that the deal doesn't gain regulatory approval.

"Our board is open to further discussions with Broadcom to see if a proposal that appropriately reflects the true value of Qualcomm shares, and ensures an appropriate level of deal certainty, can be obtained," he wrote.

Broadcom didn't immediately respond to a request for comment.

Broadcom last week raised its offer for Qualcomm to $82 a share from its earlier offer of $70 a share.

Shares in Qualcomm were little changed in Friday morning trading, while Broadcom shares slipped 1%.

Ted Greenwald contributed to this article

Write to Cara Lombardo at cara.lombardo@wsj.com

 

(END) Dow Jones Newswires

February 16, 2018 11:31 ET (16:31 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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