BHPIAA Instalment - BHP Steel Demerger

Document date:  Thu 27 Jun 2002
Published:  Thu 27 Jun 2002 18:12:25
Document No:  191779
Document part:  A
Market Flag:  N
Classification:  Structured Products Adjustment 

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-06-27  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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Australia and New Zealand Banking Group Ltd (ANZ) is the issuer of
the BHPIAA Instalment Warrant over ordinary shares in BHP Billiton
Limited (BHP) under the Offering Circular dated 10 May 2001. This
warrant will be adjusted due to the Capital Reduction and Scheme of
Arrangement relating to the demerger of BHP Steel Limited (BSL).

The Scheme proposes that eligible BHP shareholders will receive a
cash return of $0.69 per BHP share which will be applied to the
transfer from BHP of one BSL share for every five BHP shares held.

In order to take account of the Capital Reduction and Scheme of
Arrangement, the Security Trustee will arrange for the BSL shares
received under the Scheme of Arrangement to be sold on the first day
these shares trade (15 July 2002) for a price determined by the
difference between the Volume Weighted Average Price (VWAP) of BHP
cum-entitlement and BHP ex-entitlement on 2 July 2002.

The proceeds generated will be applied to reduce the Completion
Payment on BHPIAA.

If the Court grants its approval to the Scheme on 1 July 2002,
trading in BHPIAA will be suspended from 2 July 2002 until the
selling price of BSL, and following that, the adjusted Completion
Payment for BHPIAA, are determined.

ANZ will advise the ASX of the revised Completion Payment following
the above adjustment.

Defined terms used in this announcement have the meanings given to
them in the Offering Circular dated 10 May 2001.


HEAD OF EQUITY DERIVATIVES