>>> Asian Update

Asia Mid-Session Market Update: Oil falls after OPEC talks in Vienna yield no agreements; Japan shippers rally on cooperation; DBS to buy ANZ Asia assets

***Friday US markets on close: Dow -0.1%, S&P500 -0.3%, Nasdaq -0.5%***
- At the close: VIX 16.19 (+0.8pts); Treasuries: 2-yr 0.86% (flat), 10-yr 1.84% (flat), 30-yr 2.62% (+2bp)
- Best Sector in S&P500: Industrials
- Worst Sector in S&P500: Healthcare

***Weekend US Corporate Headlines***
- BHI: GE said to combine its oil and gas operations with Baker Hughes; Deal announcement expected on Monday - financial press
- RRR: Deutsche Bank said to sell its 17% stake in Red Rock Resorts for about $400M to help address concerns about its balance sheet - FT
- TWX: Goldman Sachs said to persuade Apple to make a rival bid for Time Warner - NY Post
- HON: Honeywell's Business Aviation Forecast sees 8,600 deliveries Of new business jets valued At $255B through 2026

***Asia Session Notable Observations, Speakers and Press***
- OPEC talks in Vienna yielded NO DEAL to limit oil output; Iraq and Iran remain in dispute about production cuts, not ready to freeze output - press
- (UK) BOE Gov Carney committed to serving his 8-year term; Expected to make an announce this week to end speculation he would step down - FT
- (CN) Political Bureau of the Communist Party of China (CPC) Central Committee: Reiterates stance that China to continue to implement proactive fiscal policies and maintain prudent monetary policy - press
- (CN) NDRC: China Sept railway coal transport volume 158Mt, +2% y/y
- (JP) Japan's top 3 shipping companies merging their container operations into a JV; Total investment for 3 companies at ¥300B; Expect to realize benefit of about ¥110B annually.
- (JP) According to a Nikkei survey, only 38% of Japanese public supports Parliament approving TPP agreement; 35% are opposed - Nikkei
- (US) FBI said to review about 650K emails on the laptop of former Congressman Anthony Weier, the former husband of Hillary Clinton's close aide Huma Abedin - US press

***Asian Equity Markets (00:30ET)***
- Nikkei225 -0.3%, S&P/ASX +0.8%, Kospi -0.6%, Shanghai Composite -0.5%, Hang Seng +0.1%

***FX ranges/Commodities/Futures/Fixed Income (00:30ET):***
- EUR 1.0960-1.0990; JPY 104.40-104.95; AUD 0.7580-0.7615; NZD 0.7140-0.7165
- Dec gold +0.1% at $1,278/oz, Dec crude oil -0.4% at $48.50/brl, Dec copper -0.3% at $2.19/lb
- Equity Futures: S&P500 +0.2%, Dax +0.2%, FTSE100 +0.2%
- USD/CNY: *(CN) PBOC SETS YUAN MID POINT AT 6.7641 V 6.7858 PRIOR; strongest CNY setting since Oct 21st
- (CN) PBOC to inject CNY100B in 7-day reverse repos, CNY70B in 14-day reverse repos, and CNY20B in 28-day reverse repos
- (CN) PBoC adviser: Yuan should not follow USD and should not be tied to basket of currencies - Chinese press

***Key economic data:***
- (JP) JAPAN SEPT VEHICLE PRODUCTION Y/Y: 1.4% V 8.8% PRIOR
- (JP) JAPAN SEPT PRELIMINARY INDUSTRIAL PRODUCTION M/M: 0.0% V 0.9%E; Y/Y: 0.9% V 1.9%E
- (JP) JAPAN SEPT RETAIL SALES M/M: 0.0% V 0.2%E; RETAIL TRADE Y/Y: -1.9% V -1.8%E
- (AU) AUSTRALIA OCT MELBOURNE INSTITUTE INFLATION M/M: 0.2% V 0.4% PRIOR; Y/Y: 1.5% (4-month high) V 1.3% PRIOR
- (AU) AUSTRALIA SEPT PRIVATE SECTOR CREDIT M/M: 0.4% V 0.4%E; Y/Y: 5.4% V 5.5%E
- (NZ) NEW ZEALAND OCT ANZ ACTIVITY OUTLOOK: 38.4 V 42.4 PRIOR; BUSINESS CONFIDENCE: 24.5 V 27.9 PRIOR
- (NZ) NEW ZEALAND SEPT BUILDING PERMITS M/M: +0.2% V -1.5% PRIOR; first increase in 2 months
- (KR) SOUTH KOREA SEPT INDUSTRIAL PRODUCTION M/M: +0.3% V -0.2%E; Y/Y: -2.0% V -1.1%E

***Asia movers***
- Consumer discretionary: Qantas Airways QAN.AU +2.2% (Q1 result); SAIC Motor Corp 600104.CN +1.2% (Q3 result)
- Financials: ANZ Bank ANZ.AU +1.1% (DBS to acquire Asia assets); AIA Group 1299.HK -5.8% (China banned some insurance product purchase in Hong Kong); ICBC 1398.HK +1.7% (Q3 result); Bank of Communications 3328.HK +2.6% (Q3 result)
- Industrials: Boral BLD.AU -1.3% (divestment); BYD Company 1211.HK -0.8% (Q3 result); Nippon Yusen 9101.JP +6.9%, Mitsui Osk Lines 9104.JP +8.0%, Kawasaki Kisen Kaisha 9107.JP +3.9% (Japan top shipping companies to merge container operations); Guangzhou Automobile Group 2238.HK -10.9% (9-month result)
- Technology: Haier Electronics Group 1169.HK +3.1% (Q3 result); Toshiba Corporation 6502.JP +0.8% (raises guidance)
- Materials: RUSAL 486.HK +0.4% (Q3 result); Newcrest Mining NCM.AU +5.2% (gold rises); Nippon Steel & Sumitomo Metal Corp 5401.JP -0.3% (may cut guidance)
OZ Minerals OZL.AU +4.5% (copper rises); Orocobre ORE.AU +21.7% (Q3 result)
- Energy: Beach Energy BPT.AU -3.3%, PetroChina 857.HK -0.7%, (oil extends decline); Origin Energy ORG.AU -0.6% (Q1 result)
- Healthcare: Sinopharm Group Co 1099.HK +0.7% (9-month result)
- Telecom: NTT DoCoMo Inc 9437.JP +0.8% (raises guidance)
- Utilities: Hokkaido Electric Power Co. 9509.JP -6.1% (H1 result)

FT : New Henkel chief eyes renewed focus on growth

New Henkel chief eyes renewed focus on growth
Hans Van Bylen aims to exploit opportunities offered by digitalisation

On the day that Henkel announced its chief executive was stepping down, the German consumer goods conglomerate behind Persil washing powder and Loctite glue lost €1bn of its market value.

Nine months on, however, those investor concerns over the loss of Kasper Rorsted — the man credited with reviving the 140-year-old group — seem to have faded. Henkel’s market value has surged by €11bn since then, to €47bn, making it the 10th-biggest company in Germany’s blue-chip index. And, last month, investors in effect agreed to pay a fee to lend the group money, by buying a Henkel bond carrying a yield to maturity of minus 0.05 per cent.

Hans Van Bylen, who succeeded Mr Rorsted in May, says the negative-yielding bond tells a story about Henkel and the wider market. “It means that the world financial system is quite shaky,” he says. “But, within this environment, it is also a vote of confidence in our company.”

This recent upturn in sentiment has been helped by the fast start enjoyed by Mr Van Bylen. In June, the softly spoken Belgian oversaw Henkel’s biggest purchase since 2008: buying US laundry group Sun Product for €3.2bn. In doing so, he not only strengthened Henkel’s sub-scale US presence, but also allayed fears that the group might miss out on consolidation opportunities, having failed to buy Procter & Gamble’s haircare business last year. Then, in August, Mr Van Bylen raised his guidance on Henkel’s full-year profit margin, saying it would exceed an earlier target of 16.5 per cent.

With Henkel’s latest four-year plan due next month, however, the big question for investors is how Mr Van Bylen can build on the achievements of Mr Rorsted.

“In a sense they’re a victim of their own success,” says James Targett, an analyst at Berenberg. “They have had over five years of very strong improvement in margins and returns; their acquisitions and disposals have generally been successful. The task for them now is to show that they can keep the momentum up.”

Mr Van Bylen says his priorities for the next four years will be a renewed focus on growth, as well as an effort to make Henkel more efficient and more agile, and a push to exploit the opportunities offered by digitalisation.

To meet those growth ambitions, Mr Van Bylen says that Henkel will work to reduce the gaps, or “white spots”, in its geographical presence and its mix of products.

“There are more white spots in our consumer goods businesses, compared to our industrial adhesives business,” he says. “Part of it will be in the emerging markets but we are also convinced that we can grow strongly in mature markets. Because, even if a mature market is quite stable, we always find segments which are growing.”

Henkel will also aim to derive a greater share of its earnings from providing services to customers, rather than simply selling them products. “If you look at automobiles, the product is moving from the automobile to mobility. We also see this in our businesses, and we want to expand our product to a complete service offering,” explains Mr Van Bylen. As an example, he cites Henkel’s “Persil service” in Germany, which collects laundry from customers before cleaning and returning it.

This new strategy will be implemented under Henkel’s current structure, with three divisions specialising in adhesives, laundry and homecare, and beauty. But Mr Van Bylen concedes that there is scope for further acquisitions within those categories. “M&A will be a concrete part of our strategy,” he says.

On top of this, Henkel will push for greater digitalisation to boost its e-commerce activities. Here, Mr Van Bylen sees “huge potential”, recounting how Henkel — which owns the Schwarzkopf shampoo brand — was able to become market leader in online haircare sales in China via a partnership with Alibaba.

To fund its investments in growth, Henkel plans further efficiency programmes. Mr Van Bylen says that these will not affect the overall number of staff, but concedes that resources may be shifted between business areas.

Henkel’s progress towards two of its key 2016 targets — overall and emerging market revenues — were thwarted by currency movements which have knocked roughly €1.5bn off its sales over the past four years. Another set of revenue and profitability targets will be announced next month — but Mr Van Bylen hints that this time, the group is likely to focus on organic growth, rather than absolute numbers. “The lesson,” he says “is … not to take parameters that we cannot control.”

>>> What to look at this Week End - 29th & 30th of October 2016

Weekly Update
Dow +0.09% S&P -0.69% Nasdaq -1.28% Russell -2.50% Brazil +0.31% Nikkei +1.52% Hang Seng -1.80% CSI +0.37% Shanghai +0.43% EuroStoxx +0.05% Ftse -0.34% CAC +0.28% Dax -0.14% Ibex +1.11% MIB +0.92% SMI -1.57% 
Equity markets drifted lower in the latter half of the week as quarterly earnings showed no strong overall trend. Then on an otherwise quiet Friday afternoon, FBI director Comey announced investigators had uncovered new emails that may be related to the Hillary Clinton private email server probe. Though the FBI did not give any specifics on the substance of the new investigation, markets immediately went into risk-off mode, repricing the odds of the election outcome. By the close on Friday, gold futures rose to the week's high at $1285/oz, and stocks had touched their lows of the week. For the week, the S&P500 fell 0.7%, the DJIA edged up 0.1%, and the Nasdaq dropped 1.3%. Treasuries did not react much to the FBI story, with the 10-year yield remaining near the weekly high around 1.85% on Friday.

Macro :
- BOE Governor Carney May Step Down ‘Within Days,’ Mail Reports
- Druckenmiller-Backed Fund Said Set to Start Nov. 1: Bus. Insider
- Gabriel Says EU Rejects China ‘Foul Play’ in Takeovers: Welt
- China’s Factory to the World Mulls the Unthinkable: Price Hikes
- OPEC Splits Prevent Deal With Other Producers to Curb Supply
- Saudi Stocks Extend Winning Streak as Cash Crunch Concern Eases

Keep an eye on :
- AAL LN : Anglo American Spinoff Wouldn’t Include Manganese: Telegraph
- ABG SM : Abengoa Seeks Court Approval For Restructuring Contract
- AC FP : Hyatt Hotels Gains as Much as 2.9%; Reports 3Q November 3
- AF FP : Air France-KLM Mulls Terner, Guerin for Air France Unit: Figaro
- AF FP : KLM Cabin Crew to Strike 20 Minutes Per Flight on Oct. 30
- AGFB BB : CompuGroup's acquisition of Agfa-Gevaert could stumble over retirement payments - Tidj.be
- BABA US : Alibaba in Talks with German Retailers Over Online Shops: Welt
- CBK GY : Commerzbank’s Zielke Wants to Join BDB Board, Handelsblatt Says
- ALIV SS : Takata sees Daicel, Autoliv as most desirable sponsors - report
- BHI US : GE, Baker Hughes Could Reach a Deal as Early as Next Week: WSJ
- BAS GY : BASF Says Employee Dies of Injuries After Oct. 17 Explosion
- BMPS IM : Monte Paschi Road Show to Include Doha: Sole
- CSGN VX : Credit Suisse Plans ‘Cost-Sharing Project’ w/ Another Bank: FT
- DAI GY : Daimler CEO Opposes Govt Restraints on China M&A in Europe: HB
- DAI GY : Daimler’s Zetsche Seeks Leaner Corp. Hierarchy: Handelsblatt
- DAI GY : Daimler’s Vans Business to Have Record 2016: Euro am Sonntag
- DL NA : Delta Lloyd/NN takeover talks not in exclusive phase yet
- DBK GY : Deutsche Settlement Over Russia Trades Possible in 2017: Reuters
- ESNT LN : Essentra Close to Appointing Coats’s Forman as CEO: Sunday Times
- ERICB SS : Ericsson Owners Said to Question New CEO’s U.S. Base: DI
- GHE LN : Damon Buffini Buys 5% Stake in Gresham House: Sky
- HEN3 GY : Henkel’s Van Bylen Seeks to Broaden Global Presence: FT
- HSBA LN : HSBC Seeks to Unlock GBP5b Capital From China Bank: Sunday Times
- IGAS LN : Trans European Oil & Gas Said to Seek IGas Energy Assets: Sky
- INVN US : InvenSense Said Exploring Alternatives Including Sale: Reuters
- KORS US : Michael Kors Trades to Session High; December $50 Options Active
- LPE FP : Champagne Maker Laurent-Perrier’s Owners Said to Mull Stake Sale
- MC FP : Tag Heuer CEO Sees Sale of 150,000 High-End Smartwatches: NZZ
- MG US : Magna to Grow Faster Than Overall Mkt, CEO Tells Automobilwoche
- MRK GY : Germany’s Merck Said to Explore Biosimilar Drug Unit Sale: Rtrs
- NESN VX : Nestle Wanted Health Expert for CEO Role, Chairman Tells Blick
- NOVOB DC : Novo Nordisk’s Share Implosion Sends Shock Waves Through Denmark
- SAN FP : Regeneron, Sanofi Fail to Win FDA Approval for Sarilumab
- SAN LN : StanChart Said in Financing Talks on Chinese Aviation JV: FT
- SIK VX : Sika Still Wants to Buy Back Burkard Family’s Stake: NZZ
- SWISS POST IPO : Swiss Post Has No Plans for Postfinance IPO: FuW
- TWX US : Goldman Pushing Apple to Make Bid for Time Warner: N.Y. Post
- VOW3 GY : Volkswagen to Drop BlackBerry for IPhones: Automobilwoche

(Nikkei) SoftBank to slash upfront costs for bike-sharing operators

SoftBank to slash upfront costs for bike-sharing operators
TOKYO -- SoftBank will offer information technology geared to the sharing economy, starting with a way to dramatically lower costs for launching bicycle-sharing services.
The Japanese telecommunications giant will leverage "internet of things" technologies and its own mobile communications network to push such products and services as remotely controlled keys and reservation-making smartphone apps.

SoftBank will launch a low-cost service in November for operators of bike-sharing businesses. The company has developed hardware to function as remote keys and for entering passwords to unlock the bikes.
It has also prepared smartphone apps for reserving and paying for use of the bicycles, as well as a cloud-based system for managing memberships.
GPS tracks how many bicycles are at each station so that prices can be set flexibly, with temporary discounts at stations with many parked bikes.
Bike-sharing businesses typically make an initial investment of upwards of 100,000 yen ($960) per bicycle to introduce remotely controlled keys and information systems for lending. By using the cloud and other advanced IT, SoftBank can offer a service entailing an initial investment of less than 10,000 yen per bike.
The plan is to later broaden to other types of sharing, including for electric scooters, and to expand overseas with related services.

>>> Apple's Effect on ETFs - see pdf attached

Apple's Effect on ETFs
BI ETF Analysis, Global Dashboard
1. Apple Bows Down to No Stock When It Comes to Affecting U.S. ETFs 10/28/16 (Bloomberg Intelligence) -- Apple's effect on U.S. ETFs is hard to understate. It's in 190 ETFs, representing total allocations of $29 billion, or more than 1% of all ETF assets. The tech giant also boasts the largest weighting in four of the top-five largest ETFs. Normally, ETF investors don't have to be that tuned in to day-to-day company news or earnings, but Apple is a rare exception since it is so widely held in such funds. This recurring research will monitor Apple's ongoing impact on U.S. ETF investors.
Apple's influence also shows that investors prefer to use market-cap-weighted ETFs. However, ETFs that provide alternative weightings (aka smart-beta) are growing as investors look to limit risks and outperform.
Key Points: History Shows Apple Can Erase Billions From ETFs in No Time Apple's Effect on ETFs Has Become Greater Then Most Countries Apple's Biggest ETF Holders Aren't Most Affected by the Stock Apple Is the Tail Wagging the Dog for Many Technology ETFs Equal-Weight Tech ETFs Limit Apple Exposure for Better or Worse

>>> Barrons weekend summary: positive on HLT, ITT; cautious on BAD.CA

Barrons weekend summary: positive on HLT, ITT; cautious on BAD.CA 

* Cover story: Many investors say T's bid for TWX is an admission that its lucrative wireless phone business is under pressure from TMUS and its acquisition of DirecTV hasn't yielded the expected benefits; Tie-ups between DIS/NFLX and Comcast/TMUS are possible, but unlikely anytime soon; The media deal most likely to succeed in the current landscape would be a CBS/VIAB merger. 

* Features: 1) Positive on HLT: In contrast to other hotel chains, Hilton's cheap shares look like an opportunity, since the company is opening hotels in profitable overseas markets and plans to split into three operations; 2) Positive on ITT: Conglomerate sells more pumps and valves to chemical and industrial companies than rival FLS, giving it lower exposure to the oil-and-gas industry, and its brake pad business is strong; 3) Hillary Clinton is widely expected to win the White House, but even if Democrats take the Senate, Republicans will control the House-a divided government scenario that should benefit investors; 4) Cautious on Badger Daylighting: Canadian company's revenue and truck fleet have grown during the past 15 years, but the oil slowdown, growing competition, and concerns about accounting practices should give investors pause.

* Tech Trader: While AAPL still dominates the smartphone market, some investors wonder whether its dominance in the tech sector is eroding, while rivals such as AMZN and GOOGL expand into areas such as cars and artificial-intelligence devices. 

* Trader: Edward Crotty of Davidson Investment Advisors says sector rotation induced by higher rates should to continue as investors move into financials and some cyclical stocks; Positive on LAZ: The small investment bank's "top-tier brand allows it to punch above its weight class"; it faces little risk from proprietary trading while getting about half its profits from asset management; David Trainer of New Constructs says companies with a lot of money overseas, construction firms and their suppliers, and transportation outfits should benefit if Hillary Clinton becomes president. 

* Interview: Jon Pollock of Elliott Management talks about the firm's activist investing strategies, which have targeted a range of underperforming companies (picks: DVMT, CTXS, ECA, HES, AGN, Samsung Electronics; pans: Long-term bonds in the U.S., Japan, and Europe). 

* Small Caps: Positive on KRNY: Bank's shares have gained 40% since its so-called thrift conversion, and could rise over the next two years as it expands its commercial operations in real estate and business lending. 

* Follow-Up: Positive on KEY: The firm's credit quality has improved and it's making progress cutting $400M in yearly costs from the merger with Niagara Financial Group; shares are likely to see more gains. 

* European Trader: Positive on Compagnie Financiere Richemont: Luxury conglomerate should soon recover from problems including sluggish demand in Asia, volatile currencies, and weakening tourism in Europe-and shares are likely to rise. 

* Asian Trader: Positive on Great Wall Motor: Investors who have piled into Geely Automobile Holdings should reverse the trade, since Great Wall shares have more room to rise amid strong demand and sales in China. 

* Emerging Markets: A Donald Trump defeat in the presidential race is probably already priced into Mexican assets, which have gyrated inversely to his perceived election prospects. 

* Commodities: Supply-side reforms in China may have led to an excessive cut in coal production there, setting off an unexpected rally this year, but prices are unlikely sustain gains. 

* Streetwise: MS strategist Adam Parker screened for stocks that rank in the top half of the market in terms of quality metrics, trade below 15 times 12-month earnings forecasts, and should see positive growth next year; the list includes JPM, UTX, ETN, CSCO, HON, and JCI

FT : Uber ruling in London echoes around the world

Uber ruling in London echoes around the world
The decision of a UK tribunal to take a middle way is fair on workers and the company

In its harsh judgment on Uber last week, a London employment tribunal likened the argument of one of the car-hailing company’s executives to a line from Hamlet. “The lady doth protest too much, methinks,” it said of her claim that it was not a transport company but a technology platform.

It could also have quoted another line from Shakespeare: Hamlet’s reference to a military engineer being “hoist with his own petard”, or explosive device. Uber’s device has been to turn itself into a global transport company valued at $63bn in June yet to deny that it employs drivers. That device blew up in its face on Friday.

The tribunal’s decision that Uber’s 30,000 drivers in London are workers with rights to legal minimum wages and holiday pay is the latest in a series of conflicting decisions around the world. Courts and regulators have tussled with the question of whether Uber drivers are employees or self-employed contractors, an issue with profound implications for the “gig economy”.

The London ruling, against which Uber is appealing, is significant both because of the judgment’s clarity and the fact that UK employment law offers a middle way. “Workers”, the category to which the tribunal allocated Uber drivers, enjoy some of the rights of employees but not all.

Like other large “gig economy” companies such as Airbnb, Uber offers a brand and marketing; technology to link buyers and sellers; and payment services. These platforms make it simple to hire a car, or stay in a room, without taking the full responsibility of employment or capital investment.

The tribunal briskly dismissed Uber’s efforts to evade employment responsibility, concluding: “The notion that Uber in London is a mosaic of 30,000 small businesses linked by a common platform is to our minds faintly ridiculous.” It condemned the US company’s use of “fictions” and “twisted language” in contracts.

The tribunal noted that it concurred with one California court’s view of Uber and its employment responsibilities, but other US tribunals have backed the technology company. “Uber is no more an employer to drivers than is an art gallery is to artists,” said one Florida ruling.

It is true that Uber does not qualify as an employer in many legal jurisdictions that offer a binary choice of employment and self-employment. But Uber’s ability to arbitrage the law by insisting to regulators that its drivers are independent contractors despite its tight control of how they work indicates that laws should be updated to match innovation.

Employment law has developed to avoid the exploitation of workers and ensure that employers contribute to benefits such as unemployment insurance and medical care. If technology allows companies to avoid these responsibilities by placing workers at a distance while retaining managerial fiat, it will not only limit workers’ rights but damage social welfare.

Placing the full weight of employment contracts on Uber and other such companies would also be wrong. Many Uber drivers like the freedom it offers, and consumers have gained from the ability to hail a quality ride easily. Courts should not regulate Uber out of business and sacrifice such benefits.

The tribunal’s approach is to judge Uber drivers “workers” with rights to the UK minimum wage and holiday pay. In the US, others suggest creating a category of “independent workers” with limited benefits, including employer contributions to pensions and healthcare. The law needs to keep Uber in business but keep it honest.

(Sky News) KKR-backed energy group mounts raid on UK fracking firm's assets

KKR-backed energy group mounts raid on UK fracking firm's assets
A company backed by the US buyout firm KKR is trying to secure assets owned by a British fracking group, Sky News learns.

An oil and gas group backed by the powerful Wall Street investor Kohlberg Kravis Roberts (KKR) is mounting an aggressive raid on assets owned by one of Britain's leading fracking companies.
Sky News has learnt that Trans European Oil & Gas (TEOG) is pressing IGas Energy to divest its conventional resources arm, which comprises producing assets in the east Midlands and the Weald Basin in the south of England.
IGas, which trades under names including Dart Energy and Star Energy, also ‎holds a number of licences to explore through fracking in Lancashire and the Midlands.
TEOG's effort to force IGas to put its conventional assets up for sale has been made possible by amassing a previously undisclosed but substantial voting position in IGas's secured bonds.
One insider close to the bondholders said TEOG was pursuing a 'loan-to-own' strategy, where an investor buys into a company's debt in order to secure control of the company or its assets through a restructuring of its balance sheet.
‎TEOG has hired Evercore, an investment bank, to help it in its attempts to buy the IGas assets, according to sources close to the bondholders.
‎In a statement to the London Stock Exchange last week, IGas said its board "believes that there are divergent views among those bondholders".
"These include the preference for a capital restructuring of the group or a divestment of its conventional assets.
"The board will continue discussions with its key bondholders aimed at aligning those views.
"At the same time, the board is also continuing to pursue discussions with a number of strategic investors."
TEOG's management team is no stranger to IGas's business: Melvyn Horgan, its chief technical officer, was an executive at Star Energy when it was acquired by IGas in 2012.
KKR‎'s investment in TEOG last year was aimed at giving the company the financial muscle to build a portfolio of onshore oil and gas assets in Europe.
People close to TEOG said it was convinced it could win control of the IGas assets that it was targeting.
IGas's board is said to believe, however, that the co-ownership of its two divisions continues to be in the interests of all shareholders.
Although‎ IGas's share price has fallen by more than a third over the last year, reflecting the declining oil price, analysts believe there is significant potential upside from a sustained revival in the value of the commodity.
One investor in IGas also pointed to the recent decision by Sajid Javid, the Communities Secretary, to give the go-ahead to a fracking scheme in Lancashire despite objections by the local council, as evidence for a potential improvement in the company's value.
IGas, TEOG and KKR all declined to comment.

>>> Delta Lloyd/NN takeover talks not in exclusive phase yet

Delta Lloyd/NN takeover talks not in exclusive phase yet - report (translated)

Talks between Delta Lloyd [AMS:DL], the Dutch insurer, and its suitor Dutch financial services company NN [AMS:NN], have not yet entered the stage of exclusive negotiations, Het Financieele Dagblad reported, citing sources involved with the process.
NN is under a legal obligation to provide an update on the takeover talks in a week's time, the Dutch-language item added.
ASR and Vivat, two other rumoured Dutch potential suitors, are currently looking at the figures to study if they could be interested, the report noted. However, for both parties there are potential stumbling blocks. Vivat may not secure the required approval from the Dutch central bank. While in the case of ASR the Dutch government, current majority owner, would have to agree to a takeover, the item added.

>>> Veneto Banca, Banca Popolare di Vicenza may merge in mid-2017

Veneto Banca, Banca Popolare di Vicenza may merge in mid-2017 – report (translated)
30 OCT 2016
Veneto Banca and Banca Popolare di Vicenza, the Italian lenders controlled by bank rescue fund Atlante, could merge in mid-2017, Italian language daily Il Sole 24 Ore reported.
The unsourced report said both banks are looking to draw up industrial plans for 2017-2019 in the next two months that will prepare the ground for a merger. The two lenders will form a steering committee in the next two weeks to coordinate activities between them, it added.
The report said Atlante is the driving force behind the merger.