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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16. Form 4 or
Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person
Kingdon Capital Management, LLC
152 West 57th Street
New York, New York 10019
2. Issuer Name and Ticker or Trading Symbol
Alyn Corporation (ALYN)
3. IRS Number of Reporting Person (Voluntary)
4. Statement for Month/Year
8/98
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s)to Issuer (Check all
applicable)
( ) Director (X) 10% Owner ( ) Officer (give title below)
( ) Other (specify below)
7. Individual or Joint/Group Filing (check Applicable Line)
Form filed by One Reporting Person
X Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED,
DISPOSED OF, OR BENEFICIALLY OWNED
<S> <C> <C> <C> <C> <C> <C>
1. Title of Security| 2. Transaction| 3. Transaction| 4. Securities | 5. Amount of | 6. Ownership |7. Nature of |
(Instr. 3) | Date | Code | Acquired (A) | Securities | Form: | Indirect |
| | (Instr. 8) | or Disposed | Beneficially | Direct (D) | Beneficial|
| (Month/ | | of (D) | Owned at End | or Indirect| Ownership |
| Day/ | | (Instr. 3,4, | of Month | (I) | (Instr. 4)|
| Year) | | and 5) | (Instr. 3 and 4)| (Instr. 4) | |
| | | | |(A) or| | | | |
| | Code | V | Amount|(D) |Price| | | |
_________________________________________________________________________________________________________________________________
Common 12/31/97 P 2,000 A $10.43
Common 6/30/98 A 218,182 A 5.5
Common 8/21/98 A 229,091 A 5.5 1,970,673* I By M. Kingdon
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Offshore NV**
Common 6/30/98 A 72,727 A 5.5
Common 8/21/98 A 76,364 A 5.5 569,891* I By Kingdon
Associates,
L.P.**
Common 6/30/98 A 72,727 A 5.5
Common 8/21/98 A 76,364 A 5.5 569,891* I By Kingdon
Partners,
L.P.**
125,000* I By Kingdon
Family
Partnership,
L.P.**
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</TABLE>
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<TABLE>
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TABLE II -- DERIVATIVE SECURITIES ACQUIRED,
DISPOSED OF, OR BENEFICIALLY OWNED
<S> <C> <C> <C> <C> <C> <C>
1. Title of | 2. Conver- | 3. Trans- | 4. Trans- | 5. Number of | 6. Date Exer- | 7. Title and Amount |
Derivative | sion or | action | action | Derivative | cisable and | of Underlying |
Security | Exercise | Date | Code | Securities | Expiration | Securities |
(Instr. 3) | Price of | (Month/ | (Instr. | Acquired | Date | (Instr. 3 and 4) |
| Deri- | Date/ | 8) | (A) or | (Month/Day/ | |
| vative | Year) | | Disposed of | Year) | |
| Security | | | (D) (Instr. | | |
| | | | 3, 4 and 5) | | |
| | |____________|_________________|___________________|_____________________|
| | | | | | | | | | |
| | | | | | | Date | Expira- | | Amount or |
| | | | | | | Exer- | tion | | Number of |
| | | Code | V | (A) | (D) | cisable | Date | Title | Shares |
___________________|_____________|____________|______|_____|________|________|_________|_________|________|____________|
| | | | | | | | | | |
l l l l l l l l l l l
</TABLE>
<TABLE>
<S> <C> <C> <C>
| 8. Price of | 9. Number of | 10. Ownership | 11. Nature of |
| Derivative | derivative | Form of | Indirect |
| Security | Securities | Derivative | Beneficial |
| (Instr. 5) | Benefi- | Security | Ownership |
| | cially | Direct (D) | (Instr. 4) |
| | Owned at | or Indirect | |
| | End of | (I) (Instr. | |
| | Month | 4) | |
| | (Instr. 4) | | |
</TABLE>
Explanation of Responses:
* The Reporting Person disclaims beneficial ownership of these
securities except to the extent of its pecuniary interest
therein.
** The Reporting Person has voting or investment control over
shares held by these entities.
KINGDON CAPITAL
MANAGEMENT, LLC
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/s/ Peter J. Cobos September 15, 1998
__________________________ _________________
Name: Peter J. Cobos
Title: Chief Financial
Officer
** Intentional misstatements or omissions of facts constitute
Federal Criminal Violations. See U.S.C. 1001 and 15 U.S.C.
78ff(a).
Note: File three copies of this Form, one of which must be
manually signed. If space is sufficient, see Instruction 6 for
procedure.
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CONFIRMING STATEMENT
This Statement confirms that the undersigned, M. Kingdon
Offshore NV, has authorized and designated Kingdon Capital
Management, LLC to execute and file on the undersigned's behalf
all Forms 3, 4, and 5 (including any amendments thereto) that the
undersigned may be required to file with the U.S. Securities and
Exchange Commission as a result of the undersigned's ownership of
or transactions in securities of Alyn Corporation. The authority
of Kingdon Capital Management, LLC under this Statement shall
continue until the undersigned is no longer required to file
Forms 3, 4, and 5 with regard to the undersigned's ownership of
or transactions in securities of Alyn Corporation unless earlier
revoked in writing. The undersigned acknowledges that Kingdon
Capital Management, LLC is not assuming any of the undersigned's
responsibilities to comply with Section 16 of the Securities
Exchange Act of 1934.
Date: Setpember 16, 1998
M. KINGDON OFFSHORE NV
By: Kingdon Capital Management, LLC,
Investment Manager
/s/ Peter J. Cobos
__________________
By: Peter J. Cobos
Title: Chief Financial Officer
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Joint Filer Information
Name: M. Kingdon Offshore NV
Kingdon Associates, L.P.
Kingdon Partners, L.P.
Kingdon Family Partnership, L.P.
Address: c/o Kingdon Capital Management, LLC
152 West 57th Street
New York, New York 10019
Designated Filer: Kingdon Capital Management, LLC
Issuer & Ticker
Symbol: Alyn Corporation
(ALYN)
Signature: M. KINGDON OFFSHORE NV
By: Kingdon Capital Management, LLC,
Investment Manager
/s/ Peter J. Cobos
__________________
By: Peter J. Cobos
Title: Chief Financial Officer
KINGDON ASSOCIATES, L.P.
By: Kingdon Capital Management, LLC,
General Partner
/s/ Peter J. Cobos
__________________
By: Peter J. Cobos
Title: Chief Financial Officer
KINGDON PARTNERS, L.P.
By: Kingdon Capital Management, LLC,
General Partner
/s/ Peter J. Cobos
__________________
By: Peter J. Cobos
Title: Chief Financial Officer
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KINGDON FAMILY PARTNERSHIP, L.P.
By: Kingdon Capital Management, LLC,
General Partner
/s/ Peter J. Cobos
__________________
By: Peter J. Cobos
Title: Chief Financial Officer
48400002.AN0
