The decision by ANZ to have UBS underwrite the bank's dividend reinvestment program for the current half year, and thus to raise around $1 billion in fresh capital, raised immediate speculation of plans by ANZ to invest the funds in a fresh acquisition in Asia.Bank management described the capital raising as a one off and motivated by a preference to restore the bank's ACE ratio (one measure of core capital) to its target range. The bank's stretched balance sheet - funding conduits and working capital for corporates amid heavy demand created by the credit crunch - was a second reason cited.Cynics assume management has a reasonably imminent use for this capital in mind, never mind the talk of "strategic flexibility" proffered by Mike Smith.This action, as well as the flabby detail of the second half profit, explains the sell off in ANZ's share price yesterday. The investor presentation also clarified that ANZ does not expect any capital relief following the transition to the Basel 2 regime for the calculation of capital for regulatory purposes next year.