Market Chatter - Corporate finance press digest

Oct 8 (Reuters) - The following corporate finance-related stories were reported by media on Monday:

* Etihad Airways, Abu Dhabi's flag carrier, will announce a code share agreement with Air France-KLM on Monday, the Financial Times reported.

* French luxury group PPR is preparing to sell its book and CD retailer Fnac and online fashion store La Redoute, Le Journal du Dimanche wrote on Sunday, as part of a strategy to concentrate on luxury and sports brands.

* Part state-owned Lloyds Banking Group is embroiled in a dispute with Britain's financial watchdog over its plans to return cash to shareholders, the Sunday Times reported.

* Novartis is keen to maintain its dividend and is looking to boost growth via mid-sized acquisitions, though big deals are unlikely, the Swiss drugmaker's chief executive said in a newspaper interview on Sunday.