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MBL advice re Endowment Warrants

Document date:  Thu 08 Jun 2000
Published:  Thu 08 Jun 2000 10:35:06
Document No:  210174
Document part:  A
Market Flag:  N

MACQUARIE BANK LIMITED                        2000-06-08  ASX-SIGNAL-G

HOMEX - Sydney                                                        

Pursuant to an Offering Circular dated 10 October 1997, Macquarie
Bank Limited has issued Endowment Warrants over the following
portfolio of ordinary shares:

STOCK                                                   NUMBER IN 

Amcor Limited ("AMC")                                      12
Australia & New Zealand Banking Group Ltd ("ANZ")          10         
The Broken Hill Proprietary Company Limited ("BHP")         5
Brambles Industries Limited ("BIL")                         3
Boral Limited ("BLD")                                      12.5
Commonwealth Bank Of Australia ("CBA")                      6
Coca-Cola Amatil Limited ("CCL")                            6
Coles Myer Limited ("CML")                                 15
CSR Limited ("CSR")                                        20
Fosters Brewing Group Limited ("FBG")                      38
Lend Lease Limited ("LLC")                                  6
National Australia Bank Limited ("NAB")                     5
The News Corporation Limited ("NCP")                       16
Origin Energy Limited ("ORG")                              12.5
Paperlinx Limited ("PPX")                                   4
Publishing and Broadcasting Limited ("PBL")                12
Pioneer International Limited ("PNI")                      20
Rio Tinto Limited ("RIO")                                   4
Westpac Banking Group Limited ("WBC")                      12
WMC Limited ("WMC")                                        13
Woolworths Limited ("WOW")                                 24
Woodside Petroleum Limited ("WPL")                          9

As Warrant-Issuer, Macquarie Bank Limited provides the following
information in relation to the period ending 31 May 2000.

For the period from 1 May 2000 to 31 May 2000, the following
Reduction Amounts were paid in respect of the shares in the

CODE         AMOUNT PER                   PORTFOLIO        AMOUNT

CML              $0.135      8 May 2000          15         $2.03
PBL              $0.100     15 May 2000          12         $1.20
PNI**           $4.8087        May 2000          20       $96.174
TOTAL                                                    $99.3990

** the PNI Reduction Amount is due to the takeover of PNI by Hanson,
   as described below.

In November 1999, Hanson Australia Proprietary Limited ("Hanson"), a
wholly owned subsidiary of Hanson PLC, announced a takeover offer for
the ordinary shares of Pioneer International Limited ("PNI"). The
Consideration offered was one Hanson share plus A$35.75 for every ten
PNI shares.

On 10 May 2000, it was announced that Hanson had a relevant interest
in 97.83% of the issued ordinary shares of PNI, and that Hanson
intended to proceed with compulsory acquisition of the remaining
ordinary shares of PNI. Trading of PNI shares on ASX ceased on 19 May

Clause 4.1(d) of the Terms of Issue of the PEWEMF Portfolio Endowment
Warrants ("Terms of Issue") states that both the cash component of
the Consideration and the value of the Hanson shares issued to PNI
shareholders as part of the Consideration for PNI shares are to be
treated as a Reduction Amount. The Reckoning Day for this Reduction
Amount is 31 May 2000.

The value of the Hanson shares is defined by clause 4.2(a) of the
Terms of Issue as the weighted average price (excluding special
sales, overseas sales and option exercises) on the first three days
on which trading takes place. Hanson commenced trading on ASX on 15
May 2000.

The weighted average price for Hanson on the first three days of
trading (15, 16, and 17 May 2000) was $12.337 per share. This gives a
total value for the takeover Consideration of $48.087 per ten PNI
shares, or $4.8087 per share. The Portfolio underlying each 1,000
PEWEMFs contained 20 PNI shares, so the Reduction Amount will be
$96.174 per 1,000 PEWEMFs, or $0.09617 per PEWEMF.

As at 31 May 2000, the Outstanding Amount of each Portfolio Endowment
Warrant (and for the Specified Number of 1,000) was as follows:

WARRANTS        CODE          DATE         AMOUNT         AMOUNT

1,000         PEWEMF   31 May 2000       $99.3990      $1,278.75
    1         PEWEMF   31 May 2000       $0.09940       $1.27875

In accordance with Page 54 of the Offering Circular dated 10 October
1997, the Base Rate that will apply to all series of Endowment
Warrants issued by Macquarie Bank Limited, pursuant to that Offering
Circular, from 3 April 2000 until and including 3 July 2000 is
6.0633% per annum.

If you require further information on this matter, please call me on
8232 4042.

R Dixon