Thanks for the assistance!

I tested kernel v4.8.0-040800-generic and it didn't fix the bug.
Regarding tags assigned.

Further two things for info (nothing new, just for the sake of completeness):
- I've a dualboot and the touchpad works on windows.
- System Settings -> Input Devices -> Touchpad shows red error message 
"Synaptics backend not found"

** Changed in: linux (Ubuntu)
       Status: Incomplete => Confirmed

** Tags added: kernel-bug-exists-upstream

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  Touchpad not detected

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