Australia Stocks: Babcock Power, Evenstra, Fortescue, Rio Tinto

By Shani Raja

Dec. 22 (Bloomberg) -- The S&P/ASX 200 Index slipped 58.30 points, or 1.6 percent, to 3,557.40 at the close in Sydney. The following shares were among the most active.

Australian Agricultural Co. (AAC AU), the nation’s largest cattle rancher, rallied 14 cents, or 8.6 percent, to A$1.83, the highest since Nov. 17. The company agreed to sell five cattle properties with a book value of A$250 million ($170 million) to Primary Holdings International to reduce debt.

Babcock & Brown Power (BBP AU), the Australian electricity producer seeking to sell plants to reduce debt, soared 2.3 cents, or 44 percent, to 7.5 cents, the highest since Dec. 1 and the benchmark’s biggest gainer. The company said it’s received non- binding “indicative submissions” for the acquisition of its business.

Envestra Ltd. (ENV AU), Australia’s largest natural gas distributor, rose 3 cents, or 10 percent, to 33 cents, the most since April 2, 2001. The company raised its profit guidance for this fiscal year to A$30 million from A$25 million.

Fortescue Metals Group Ltd. (FMG AU) Fortescue fell 45 cents, or 21 percent, to A$1.72, the most since Oct. 15 and the index’s biggest loser. Australia’s third-biggest iron-ore producer fell after selling shares to pay a bill and raise cash.

Qantas Airways Ltd. (QAN AU) fell 10 cents, or 3.8 percent, to A$2.54, the most since Dec. 12. Qantas agreed to an average pay increase of 16 percent over four years for maintenance workers, who this year forced delays during an industrial campaign over wages, the Australian Financial Review said, citing a union official.

Separately, Qantas said it will again reduce its international and domestic fuel surcharges effective on tickets issued on or after Dec. 23.

Rio Tinto Group (RIO AU), the world’s third-biggest mining company, dropped A$1.61, or 4.1 percent, to A$37.40, the lowest since Dec. 12. Rio suspended operations at its Hismelt pig-iron plant in Western Australia state amid falling global demand for commodities. UBS AG cut its earnings target on the company.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.