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DIAMOND SHAMROCK ANNOUNCES $75 MILLION PRIVATE PLACEMENT OF CONVERTIBLE PREFERRED STOCK

 SAN ANTONIO, Texas, June 4 /PRNewswire/ -- Diamond Shamrock, Inc. (NYSE: DRM) announced today that it has entered an agreement to sell convertible preferred stock in a private transaction for an aggregate of $75 million, before discounts and transaction costs.
 The preferred stock is convertible into approximately 2.83 million shares of Diamond Shamrock's common stock. The preferred stock will also be redeemable for the Company's common stock under certain circumstances and will be redeemable at par for cash commencing on June 15, 2000. Completion of the transaction, which is subject to customary conditions, is scheduled for June 10, 1993.
 Diamond Shamrock CEO and President Roger Hemminghaus said, "The purpose of this offering is to increase our financial flexibility. This will permit us to take advantage of changes and opportunities that we see developing in our businesses and marketing areas. We believe that over the next several years marginal refining capacity and retail outlets will continue to close, and we want to be positioned to continue to gain market share and increase profitability."
 With various refinery expansions and upgrading projects nearing completion at the Company's refineries, the Company will focus on strategically growing its marketing business and pipeline systems. Pending such use, the proceeds from the offering will be used primarily to repay short-term borrowings, with the balance invested in short-term, investment grade securities.
 Diamond Shamrock, Inc., with annual sales of approximately $2.6 billion, is an independent refiner and marketer of petroleum products. The San Antonio-based corporation has two Texas refineries, markets gasoline through approximately 2,000 Diamond Shamrock branded outlets, manufactures and markets petrochemicals, and stores and markets natural gas liquids.
 -0- 6/4/93
 /CONTACT: Bill Strain, investor relations of Diamond Shamrock, Inc., 210-641-8708/
 (DRM)


CO: Diamond Shamrock, Inc. ST: Texas IN: OIL SU: OFR

SH -- NY014 -- 5335 06/04/93 09:23 EDT
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Publication:PR Newswire
Date:Jun 4, 1993
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