Answering my own question for some completeness. It seems it was a trivial import issue, Since I was switching from Activity to ActionBarActivity the previous import were causing the issue.
Problem was caused by below imports.
import android.app.ActionBar;
import android.app.ActionBar.OnNavigationListener;
import android.app.DialogFragment;
Solved the issue by replacing them with...
import android.support.v4.app.DialogFragment;
import android.support.v4.app.Fragment;
import android.support.v7.app.ActionBar;
import android.support.v7.app.ActionBar.OnNavigationListener;