Aviva plunges on Synergy decision

Aspiring energy supplier Aviva Corporation's share price today slumped as much as 46 per cent after it emerged from a trading halt, days after failing to win a share of Synergy's latest procurement package.

Today was the company's first day of trading since Tuesday, when Synergy selected state generator Verve Energy to supply at least 638 MW of electricity under its 2008 procurement tender.

Aviva's share price slumped to a low of 7 cents before rallying to close at 8 cents, markedly down from its pre-trading halt value of 13 cents.

Aviva said yesterday it would have to review the future of its proposed $1 billion, 450 MW Coolimba power project in the Mid West because of Synergy's decision.

It said its board would be meeting as soon as possible to consider further options for the power plant.

Synergy had also named Verve as a preferred tender for its 2009 procurement tender.