MCKESSON CORP
424B3, 1997-10-20
DRUGS, PROPRIETARIES & DRUGGISTS' SUNDRIES
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   PROSPECTUS SUPPLEMENT
   (TO PROSPECTUS DATED JUNE 18, 1997)

              4,000,000 TRUST CONVERTIBLE PREFERRED SECURITIES
                          MCKESSON FINANCING TRUST
                 5% TRUST CONVERTIBLE PREFERRED SECURITIES
        (LIQUIDATION AMOUNT $50 PER CONVERTIBLE PREFERRED SECURITY)
               GUARANTEED TO THE EXTENT SET FORTH HEREIN BY,
                            MCKESSON CORPORATION
                           

         This Prospectus Supplement supplements and amends the Prospectus
   dated June 18, 1997 (the "Prospectus") relating to the 5% Trust
   Convertible Preferred Securities (the "Convertible Preferred
   Securities"), which represent preferred undivided beneficial interests
   in the assets of McKesson Financing Trust, a statutory business trust
   formed under the laws of the State of Delaware, and the shares of common
   stock, par value $.01 per share ("McKesson Common Stock"), of McKesson
   Corporation, a Delaware corporation ("McKesson"), issuable upon
   conversion of the Convertible Preferred Securities.

         McKesson and AmeriSource Health Corporation ("AmeriSource"), a
   leading U.S. wholesale distributor of pharmaceutical and related health
   care products and services, have signed a definitive merger agreement
   providing for McKesson to acquire AmeriSource. Under the terms of the
   agreement, stockholders of AmeriSource will receive a fixed exchange
   ratio of 0.71 shares of McKesson common stock for each share of
   AmeriSource common stock. McKesson will issue approximately 17.4 million
   new shares of common stock in the merger, and will assume the long-term
   debt of AmeriSource which was approximately $532.3 million at June 30,
   1997. The merger of the two companies has been structured as a tax-free
   transaction and will be accounted for as a pooling of interests. The
   combined company will operate under the McKesson name and will be
   headquartered in San Francisco.

         Upon completion of the merger, R. David Yost, currently president
   and chief executive officer of AmeriSource, will become group president
   of the AmeriSource Services Group and a McKesson corporate vice
   president. Also upon completion of the merger, McKesson's board of
   directors will be expanded from nine to twelve members, which will
   include Yost and another two directors from the current AmeriSource
   board.

         Subject to regulatory approval and shareholder approval of both
   companies, the transaction is expected to be completed in early 1998.
   There can be no assurance that the merger will be completed, or that it
   will be completed as contemplated.

         The table on pages 56 through 58 of the Prospectus, which sets
   forth information with respect to the Selling Holders (as defined in the
   Prospectus) and the respective amounts of Convertible Preferred
   Securities beneficially owned by each Selling Holder that may be offered
   pursuant to the Prospectus (as supplemented and amended), is hereby
   amended by (i) the deletion of item 20 and the substitution therefor of
   a new item 20 and (ii) the addition of an item 61, to that table as
   follows:

                       Convertible                      
                        Preferred                      
                       Securities         Number of         Convertible
                         Owned           Convertible         Preferred
                        Prior to          Preferred        Securities Owned
                        Offering          Securities        After Offering 
   "Selling Holder      Number  Percent    Offered         Number   Percent

    20.  Goldman,       217,500  5.43%     217,500           0        0%
         Sachs & Co          
    61.  Dreyfus         40,000  1.00%      40,000           0        0%"
         Variable
         Investment       
         Fund Growth &
         Income
         Portfolio

         The Prospectus, together with this Prospectus Supplement,
   constitutes the prospectus required to be delivered by Section 5(b) of
   the Securities Act of 1933, as amended, with respect to offers and sales
   of the Convertible Preferred Securities and McKesson Common Stock
   issuable upon conversion of the Convertible Preferred Securities. All
   references in the Prospectus to "this Prospectus" are hereby amended to
   read "this Prospectus (as supplemented and amended)".

   PROSPECTIVE INVESTORS SHOULD CAREFULLY CONSIDER MATTERS DISCUSSED UNDER
   THE CAPTION "RISK FACTORS" BEGINNING ON PAGE 6 OF THE PROSPECTUS.

   THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
   AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
   SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
   PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
   REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

   The date of this Prospectus Supplement is October 16, 1997.





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