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UPDATE 1-Qualcomm proposes further price talks with Broadcom

(Adds details on discussions, background, shares)

Feb 26 (Reuters) - Chipmaker Qualcomm Inc on Monday urged Broadcom Ltd to enter into direct negotiations on its $117 billion offer for the company, and said the two sides had made progress on regulatory and other issues at a meeting last week.

Qualcomm maintained that all of Broadcom's previous offers materially undervalued the company and proposed they conduct mutual due diligence to better inform talks on a price.

In a letter to Broadcom Chief Executive Hock Tan, Qualcomm proposed arranging a meeting focused on price as soon as mutually convenient for both parties.

The letter comes ahead of a showdown on March 6, when Qualcomm shareholders are scheduled to elect an 11-member board and decide whether to hand control to a slate of six nominees put forward by Broadcom.

Broadcom cut its bid last week by 4 percent to $117 billion as it objected to Qualcomm's decision to raise its own bid for NXP Semiconductors NV to $44 billion.

In a meeting with Broadcom on Friday, Qualcomm proposed a reverse termination fee of 9 percent of enterprise value, if Broadcom fails to win regulatory approvals.

Broadcom had previously proposed a $8 billion breakup fee.

The company was not immediately available for comment. (Reporting by Sonam Rai in Bengaluru; Editing by Saumyadeb Chakrabarty)