U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person
Adloff, Richard C.
1450 Waukegan Road
McGaw Park, IL 60085
USA
2. Date of Event Requiring Statement (Month/Day/Year)
9/20/96(1)
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Issuer Name and Ticker or Trading Symbol
Allegiance Corporation
AEH
5. Relationship of Reporting Person to Issuer (Check all applicable)
( ) Director ( ) 10% Owner (X) Officer (give title below) ( ) Other
(specify below)
Corporate Vice President and Controller
6. If Amendment, Date of Original (Month/Day/Year)
<TABLE>
<CAPTION>
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Table I -- Non-Derivative Securities Beneficially Owned |
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1. Title of Security |2. Amount of |3. Ownership |4. Nature of Indirect |
| Securities | Form: | Beneficial Ownership |
| Beneficially | Direct(D) or | |
| Owned | Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C>
Common Stock (and Series A Junior Participa|0 | | |
ting Preferred Stock Purchase | | | |
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Rights currently attached to and trading wi| | | |
th the Common Stock) (2) | | | |
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___________________________________________________________________________________________________________________________________|
<CAPTION>
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Table II -- Derivative Securitites Beneficially Owned |
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1.Title of Derivative |2.Date Exer- |3.Title and Amount | |4. Conver-|5. Owner- |6. Nature of Indirect |
Security | cisable and | of Underlying | |sion or |ship: | Beneficial Ownership |
| Expiration | Securities | |exercise |Form of | |
| Date(Month/ |-----------------------|---------|price of |Deriv- | |
| Day/Year) | |Amount |deri- |ative | |
| Date | Expira- | |or |vative |Security: | |
| Exer- | tion | Title |Number of|Security |Direct(D) or | |
| cisable | Date | |Shares | |Indirect(I) | |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C>
None | | | | | | | |
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___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
(1) Anticipated date of effectiveness of Form 10 for
Issuer.
(2) On October 1, 1996, it is expected that Allegiance Corporation will become
an independent publicly-traded
company following a dividend of Allegiance Corporation common shares on each
outstanding share of Baxter
International Inc. common stock. At such time, it is expected that the
reporting person will receive Allegiance
Corporation common shares. However, the amount of common stock to be received
on such date is uncertain
because the dividend ratio has not yet been finalized. All Allegiance
Corporation shares are owned by Baxter
International Inc. as of the date
hereof.
SIGNATURE OF REPORTING PERSON
Richard C. Adloff
DATE
9/19/96
