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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Amendment No.: 2*
Name of Issuer: Dravo Corporation
Title of Class of Securities: Common Stock, $1.00 par value
CUSIP Number: 261471106
(Name, Address and Telephone Number of Person
Authorized To Receive Notices and Communications)
Mr. Peter J. Cobos c/o Kingdon Capital Management Corporation,
152 West 57th Street, New York, New York 10019
(Date of Event which Requires Filing of this Statement)
October 31, 1997
If the filing person has previously filed a statement on Schedule
13G to report the acquisition which is the subject of this
Schedule 13D, and is filing this schedule because of
Rule 13d-1(b)(3) or (4), check the following box [ ].
*The remainder of this cover page shall be filled out for a
reporting person's initial filing on this form with respect to
the subject class of securities, and for any subsequent amendment
containing information which would alter the disclosures provided
in a prior cover page.
The information required in the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section 18
of the Securities Exchange Act of 1934 ("Act") or otherwise
subject to the liabilities of that section of the Act but shall
be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP No. 261471106
1. Name of Reporting Person
I.R.S. Identification No. of Above Person
Kingdon Capital Management Corporation
2. Check the Appropriate Box if a Member of a Group
a.
b. x
3. SEC Use Only
4. Source of Funds
WC
5. Check if Disclosure of Legal Proceedings is Required Pursuant
to Items 2(d) or 2(e)
6. Citizenship or Place of Organization
Delaware
Number of Shares Beneficially Owned by Each Reporting Person
With:
7. Sole Voting Power:
472,000
8. Shared Voting Power:
9. Sole Dispositive Power:
472,000
10. Shared Dispositive Power:
11. Aggregate Amount Beneficially Owned by Each Reporting Person
472,000
12. Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares
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13. Percent of Class Represented by Amount in Row (11)
3.19%
14. Type of Reporting Person
CO
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This Amendment No. 2 to Schedule 13D is being filed because the
holdings of Kingdon Capital Management Corporation ("KCMC") in
the Common Stock, $1.00 par value (the "Common Stock") of Dravo
Corporation ("Dravo") have decreased from 6.8% to 3.19% and as
such KCMC has ceased to be the beneficial owner of more than 5%
of the Common Stock of Dravo.
Item 1. Security and Issuer
No change.
Item 2. Identity and Background
No change.
Item 3. Source and Amount of Funds or Other Consideration.
As of the date hereof, KCMC beneficially owns 472,000
shares of Common Stock. All 472,0000 shares of Common
Stock are held by entities and managed accounts over
which KCMC has investment discretion. The funds for the
purchase of the Common Stock held by the entities and
managed accounts over which KCMC has investment
discretion have come from each entity's or account's own
funds. No leverage was used to purchase any shares.
Item 4. Purpose of Transactions.
No change.
Item 5. Interest in Securities of Issuer.
As of the date hereof, KCMC is the beneficial owner of
472,000 shares of Common Stock. Based on information
received from Dravo, KCMC believes there to be
14,778,000 shares of Common Stock outstanding.
Therefore, KCMC is deemed to beneficially own 3.19% of
the outstanding shares of Common Stock. KCMC has the
sole power to vote, direct the vote, dispose of or
direct the disposition of all the shares of Common Stock
that it is currently deemed to beneficially own. KCMC
ceased to be a beneficial owner of more than 5% of the
Common Stock of Dravo on October 31, 1997.
Item 6. Contracts, Arrangements, Understandings or
Relationships with Respect to Securities of the Issuer
No change.
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Item 7. Material to be Filed as Exhibits.
Attached hereto as Exhibit A is a description of the
transactions in the Common Stock that were effected by KCMC since
August 31, 1997.
Signature
The undersigned, after reasonable inquiry and to
the best of its knowledge and belief, certifies that the
information set forth in this statement is true, complete
and correct.
November 4, 1997
Kingdon Capital Management Corporation
By: /s/ Peter J. Cobos
__________________________
Peter J. Cobos, Controller
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EXHIBIT A
SCHEDULE OF TRANSACTIONS
Date Shares Acquired Price Per Share
or (Sold) (Including Commission)
10/13/97 (3,000) $11.94
10/16/97 (23,500) 11.94
10/20/97 (170,000) 11.94
10/21/97 (40,000) 12.31
10/30/97 (5,400) 10.31
10/31/97 (262,600) 10.20
11/3/97 (25,700) 10.47
48400002.AL2
