8-K

                   SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

                     ______________________________

                                FORM 8-K


            Current Report Pursuant to Section 13 or 15(d) of
                 the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):  December 16, 1998 
(December 2, 1998)


                      GREIF BROS. CORPORATION					
         (Exact name of registrant as specified in its charter)


          Delaware                      1-566            31-4388903	
 (State or other jurisdiction        (Commission        (IRS Employer    
     of incorporation)               File Number)     Identification No.)

    425 Winter Road, Delaware, Ohio                        43015		
  (Address of principal executive offices)               (Zip Code)


Registrant's telephone number, including area code:  (740) 549-6000


                             Not Applicable						
        (Former name or former address, if changed since last report)



Item 5.		Other Events.

 On December 2, 1998, Greif Bros. Corporation, a Delaware corporation (the 
"Company"), and Abzac s.a., a privately held company in France ("Abzac"), 
signed a letter of intent to exchange the Company's spiral core business 
for a 49% equity interest in Abzac's fibre drum business.  The Company's 
spiral core operations include three locations: Bowmanville, Ontario, 
Fort Frances, Ontario and Pointe-Aux-Trembles, Quebec in Canada.  Abzac's 
fibre drum operations include three locations: Lyon, Anvin and Abzac 
in France.

 The transaction is subject to due diligence and is anticipated to be 
completed during the second calendar quarter of 1999.

 The letter of intent is described in the press release issued by the 
Company on December 7, 1998, which is included herewith as Exhibit 99.


                                  SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, 
the Registrant has duly caused this report to be signed on its behalf 
by the undersigned hereunto duly authorized.


                                        GREIF BROS. CORPORATION



Date: December 16, 1998                 By /s/ Michael J. Gasser			
                                        Michael J. Gasser
                                        Chairman and Chief Executive Officer


                                EXHIBIT INDEX


 Exhibit No.                    Description of Exhibit

    99	          Press release issued by Greif Bros. Corporation on 
                   December 7, 199

EX-99.PRESSRELEASE

                                                           EXHIBIT 99



FOR IMMEDIATE RELEASE                 For additional information contact:
                                      Robert A. Lentz
                                      Robert A. Lentz and Associates
                                      (614) 876-2000


              Greif Bros. Corporation Announces Investment
                   in French Fibre Drum Manufacturer

DELAWARE, Ohio (December 7, 1998)  Greif Bros. Corporation (Nasdaq: 
GBCOA/GBCOB and Abzac, a privately held company in France, today announced a 
letter of intent for the exchange of Greif Bros. Corporation's ("Greif") 
spiral core manufacturing asset for a 49% equity interest in Abzac's fibre 
drum business.  Greif manufactures spiral cores in 3 locations through its 
wholly-owned subsidiary in Canada, Greif Containers, Inc.  Abzac, through 
one of its subsidiaries, is the leading manufacturer of fibre drums in 
France.  The transaction is subject to the normal due diligence process 
and is anticipated to be completed during the second calendar quarter of 1999.

Michael J. Gasser, Chairman and CEO of Greif Bros. Corporation, stated, "We 
are extremely pleased with the opportunity to work with Abzac in the growth 
of the fibre drum business in France.  We have the utmost respect for their 
company.  This transaction is expected to leverage the strengths of both 
companies and also represents our initial expansion beyond North America."

Statements made in this release which state the Company's or management's 
intentions, hopes, beliefs, expectations or predictions of the future are 
forward-looking statements. It is important to note that the Company's 
actual results could differ materially from those projected in such forward-
looking statements. Additional information concerning factors that could 
cause actual results to differ materially  from those in the forward-looking 
statements are contained in the Company's SEC filings, including but not 
limited to the Company's report on Form 10-K and Annual Report for the year 
ended October 31, 1997. 

Greif Bros. Corporation manufactures and markets a broad variety of superior 
quality industrial packaging and components including steel drums, fibre drums, 
plastic drums and multiwall bags. The Company is integrated, from its 
timberlands to corrugated sheet and box operations, including both virgin and 
recycled paper mills. With operations in the United States, Canada and Mexico, 
Greif Bros. provides innovative products, services and solutions to meet the 
ever changing needs of its customers.