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December 27 2012, 08:00AM

Stocks to watch on the Australian stock exchange on Thursday December 27

BBG - BILLABONG INTERNATIONAL LTD - steady at 82.5 cents

Troubled surfwear retailer Billabong will allow its latest suitor, former board member Paul Naude, to conduct due diligence on the company.

LLC - LEND LEASE GROUP - up one cent at $9.09

Builder and engineer Lend Lease has been selected as the preferred tenderer for a $500 million upgrade of part of the Pacific Highway on NSW's north coast.

LEI - LEIGHTON HOLDINGS LTD - down 11 cents at $17.73

Leighton Holdings subsidiary John Holland has been awarded two contracts with Sydney Water.

MAH - MACMAHON HOLDINGS LTD - down one cent at 22.5 cents

Mining contractor Macmahon Holdings expects to make just $2 million on the sale of its construction business to Leighton Holdings due to $12 million in redundancy costs.

SXR - SKYWEST AIRLINES LTD - steady at 42 cents

Regional airline and takeover target Skywest has signed a new charter agreement with mining giant Rio Tinto to transport mine workers in the Pilbara.