Warrant Adjustment - QANWAH/QANWAS/QANWAT

Document date:  Fri 23 Aug 2002
Published:  Mon 26 Aug 2002 08:45:08
Document No:  193789
Document part:  A
Market Flag:  N
Classification:  Structured Products Adjustment 

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-08-23  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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Market participants were advised on 22 August 2002 by Australia and
New Zealand Banking Group Limited (ANZ) of the adjustment methodology
applicable to the trading warrants issued by ANZ over ordinary shares
in Qantas Airways Limited (QAN) as a result of the QAN non-
renounceable entitlement issue. As there are no current holders of
the QANWAT series of European Put Warrants, ANZ previously advised
that this series will not be adjusted.

The QAN non-renounceable offer price of $4.20 and issue ratio of 1
new share for every 8.2 ordinary QAN shares were announced by the
Company on Friday 23 August 2002, prior to the resumption of trading
in the underlying QAN securities. In addition, the Exchange
determined an ex-entitlement VWAP of $4.4541 post market-close today.
As stated in the previous announcement, the new shares are not
entitled to the $0.09 dividend payable on 2 October 2002.

The entitlement value was calculated using:

r = S-d-C

where:

r = value of the rights

S = the ex-rights share price (QAN VWAP on the first day of trading
ex-entitlement)

d = the ordinary dividend that new shares acquired under the
entitlement offer are not entitled to

C = the consideration paid to exercise the implied rights (this being
the entitlement price)

r = $4.4541 - $0.09 - $4.20

r = $0.1641

The adjusted contract sizes for both the QANWAH and QANWAS series of
traded warrants was calculated as follows:

NC = OC+n*r/S

where:

NC = New Contract Size

OC = Old Contract Size, currently (1/3)

n = number of entitlements (based on 1:8.2) per Old Contract Size

As such, the NC is 0.3348; implying that 2.987 QANWAH or QANWAS
warrants are exercisable into 1 QAN share.

The strike was adjusted using:

New Strike = Old Strike * OC / NC

Accordingly, ANZ advises that:

* The QANWAH strike is adjusted from $4.50 to the new strike of
$4.48, and

* The QANWAS strike is adjusted from $4.00 to the new strike of
$3.98.

Defined terms used in this announcement have the meanings given to
them in the respective Offering Circulars.


J Koeppenkastrop
HEAD OF EQUITY DERIVATIVES