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							OMB Number:3235-0145
							Expires:  August 31, 1999
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						UNITED STATES
				SECURITIES AND EXCHANGE COMMISSION
					Washington, D.C. 20549

						SCHEDULE 13G

			Under the Securities Exchange Act of 1934
					  (Amendment No. *)

				CITADEL HOLDING CORPORATION					  
					(Name of Issuer)

						Common Stock
				(Title of Class of Securities)

						172862104	
					   (CUSIP Number)

						 August 28, 1998
		(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this 
Schedule is filed:

					/___/	Rule 13d-1(b)
					/_X_/	Rule 13d-1(c)
					/___/	Rule 13d-1(d)

* 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 disclosures provided in a prior cover page.

The information required on 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).

Potential persons who are to respond to the collection of information 
contained in this form are not required to respond unless the form 
displays a currently valid OMB control number.

SEC 1745 (3-98)						Page 1 of 9 pages

 

CUSIP No. 172862104					Page 2 of 9 Pages

- ----------------------------------------------------------------
1	NAME OF REPORTING PERSONS
	IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

	Lawndale Capital Management, LLC
- ----------------------------------------------------------------
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
	(a)/X/
	(b)/ /
- ----------------------------------------------------------------
3	SEC USE ONLY

- ----------------------------------------------------------------
4	CITIZENSHIP OR PLACE OF ORGANIZATION

	California
- ----------------------------------------------------------------
	  NUMBER OF		5	SOLE VOTING POWER
	   SHARES				0
	BENEFICIALLY		---------------------------------------
	  OWNED BY			6	SHARED VOTING POWER
	    EACH				666,900
	 REPORTING		---------------------------------------
	   PERSON			7	SOLE DISPOSITIVE POWER
	    WITH				0
					---------------------------------------
					8	SHARED DISPOSITIVE POWER
						666,900
- ----------------------------------------------------------------
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	666,900
- ----------------------------------------------------------------
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See 
Instructions)

- ----------------------------------------------------------------
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
	9.99
- ----------------------------------------------------------------
12	TYPE OF REPORTING PERSON (See Instructions)
	OO, IA
- ----------------------------------------------------------------

 
								Page 3 of 9 Pages
CUSIP No. 172862104						

- ----------------------------------------------------------------
1	NAME OF REPORTING PERSONS
	IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

	Andrew E. Shapiro
- ----------------------------------------------------------------
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
	(a)/X/
	(b)/ /
- ----------------------------------------------------------------
3	SEC USE ONLY

- ----------------------------------------------------------------
4	CITIZENSHIP OR PLACE OF ORGANIZATION

	United States of America
- ----------------------------------------------------------------
	  NUMBER OF	5	SOLE VOTING POWER
	   SHARES			0
	BENEFICIALLY		---------------------------------------
	  OWNED BY		6	SHARED VOTING POWER
	    EACH			666,900
	 REPORTING		---------------------------------------
	   PERSON		7	SOLE DISPOSITIVE POWER
	    WITH			0
					---------------------------------------
				8	SHARED DISPOSITIVE POWER
					666,900
- ----------------------------------------------------------------
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	666,900
- ----------------------------------------------------------------
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See 
Instructions)

- ----------------------------------------------------------------
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
	9.99
- ----------------------------------------------------------------
12	TYPE OF REPORTING PERSON (See Instructions)
	IN
- ----------------------------------------------------------------



CUSIP No. 172862104					Page 4 of 9 Pages

- ----------------------------------------------------------------
1	NAME OF REPORTING PERSONS
	IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

	Diamond A Partners, L.P.
- ----------------------------------------------------------------
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
	(a)/X/
	(b)/ /
- ----------------------------------------------------------------
3	SEC USE ONLY

- ----------------------------------------------------------------
4	CITIZENSHIP OR PLACE OF ORGANIZATION

	California
- ----------------------------------------------------------------
	  NUMBER OF		5	SOLE VOTING POWER
	   SHARES				0
	BENEFICIALLY		---------------------------------------
	  OWNED BY			6	SHARED VOTING POWER
	    EACH				567,000
	 REPORTING		---------------------------------------
	   PERSON			7	SOLE DISPOSITIVE POWER
	    WITH				0
					---------------------------------------
					8	SHARED DISPOSITIVE POWER
						567,000
- ----------------------------------------------------------------
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	567,000
- ----------------------------------------------------------------
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See 
Instructions)

- ----------------------------------------------------------------
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
	8.5
- ----------------------------------------------------------------
12	TYPE OF REPORTING PERSON (See Instructions)
	PN
- ----------------------------------------------------------------



CUSIP No. 172862104					Page 5 of 9 Pages

- ----------------------------------------------------------------
1	NAME OF REPORTING PERSONS
	IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

	Diamond A Investors, L.P.
- ----------------------------------------------------------------
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
	(a)/X/
	(b)/ /
- ----------------------------------------------------------------
3	SEC USE ONLY

- ----------------------------------------------------------------
4	CITIZENSHIP OR PLACE OF ORGANIZATION

	California
- ----------------------------------------------------------------
	  NUMBER OF		5	SOLE VOTING POWER
	   SHARES				0
	BENEFICIALLY		---------------------------------------
	  OWNED BY			6	SHARED VOTING POWER
	    EACH				99,900
	 REPORTING		---------------------------------------
	   PERSON			7	SOLE DISPOSITIVE POWER
	    WITH				0
					---------------------------------------
					8	SHARED DISPOSITIVE POWER
						99,900
- ----------------------------------------------------------------
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	99,900
- ----------------------------------------------------------------
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (See 
Instructions)

- ----------------------------------------------------------------
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
	1.5
- ----------------------------------------------------------------
12	TYPE OF REPORTING PERSON (See Instructions)
	PN
- ----------------------------------------------------------------

 

CUSIP No. 172862104			13G		Page 6 of 9 Pages
 
ITEM 1.

     (a)  The name of the issuer is Citadel Holding Corporation(the 
"Issuer").

     (b)  The principal executive office of the Issuer is located at 550 
S. Hope St., Suite 1825, Los Angeles, CA 90071.

ITEM 2.

     (a)  The names of the persons filing this statement are Andrew E. 
Shapiro ("Shapiro"), Lawndale Capital Management, LLC ("Lawndale"), 
Diamond A Partners, L.P. ("DAP") and Diamond A Investors, L.P. 
("DAI")(collectively, the "Filers").

     (b)  The principal business office of the Filers is located at One 
Sansome St., Suite 3900, San Francisco, CA  94104.

     (c)  See Item 4 of the cover sheet for each Filer.

     (d)  This statement relates to shares of common stock of the Issuer 
(the "Stock").

     (e)  The CUSIP number of the Stock is 172862104.


 


CUSIP No. 172862104		13G			Page 7 of 9 Pages

ITEM 3.  If this statement is filed pursuant to rule 240.13d-1(b) or 
240.13d-2(b) or (c), check whether the person filing is a:

	(a)	___	Broker or dealer registered under section 15 of the Act (15 
U.S.C. 78o).

	(b)	___	Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 
78c).

	(c)	___	Insurance company as defined in section 3(a)(19) of the Act 
(15 U.S.C. 78c).

	(d)	___	Investment company registered under section 8 of the 
Investment Company Act of 1940 (15 U.S.C. 80a-8).

	(e)	___	An investment adviser in accordance with 240.13d-
1(b)(1)(ii)(E).

	(f)	___	An employee benefit plan or endowment fund in accordance 
with 240.13d-1(b)(1)(ii)(F).

	(g)	___	A parent holding company or control person in accordance 
with 240.13d-1(b)(1)(ii)(G)

	(h)	___	A savings association as defined in section 3(b) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813).

	(i)	___	A church plan that is excluded from the definition of an 
investment company under section 3(c)(14) of the Investment Company Act of 
1940 (15 U.S.C. 80a-3).

	(j)	___	Group, in accordance with section 240.13d-1(b)(1)(ii)(J)


 


CUSIP No. 172862104		13G			Page 8 of 9 Pages

ITEM 4.  OWNERSHIP

See Items 5-9 and 11 on the cover sheet for each Filer.

 
ITEM 5.  OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS

If this statement is being filed to report the fact that as of the date 
hereof the reporting person has ceased to be the beneficial owner of more 
than five percent of the class of securities, check the following /___/.


ITEM 6.  OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON

Lawndale is an investment adviser whose clients have the right to receive 
or the power to direct the receipt of dividends from, or the proceeds from 
the sale of, the Stock.  Shapiro is the Manager of Lawndale.  Lawndale is 
the general partner of those clients, DAP and DAI

 


CUSIP No. 172862104		13G			Page 9 of 9 Pages


ITEM 7.  IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH 
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY

Not applicable.

ITEM 8.  IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP

See Item 2(a) of this Schedule.

ITEM 9.  NOTICE OF DISSOLUTION OF GROUP

Not applicable.

ITEM 10.  CERTIFICATION

By signing below I certify that, to the best of my knowledge and belief, 
the securities referred to above were not acquired and are not held for 
the purpose of or with the effect of changing or influencing the control 
of the issuer of the securities and were not acquired and are not held in 
connection with or as a participant in any transaction having that purpose 
or effect.


DATED:	August 28, 1998

DIAMOND A PARTNERS, L.P.				DIAMOND A INVESTORS, L.P.

By:  Lawndale Capital Management		By:	Lawndale Capital Management,
	LLC							LLC
	General Partner					General Partner


	By:	/s/ Andrew E. Shapiro		By:	/s/ Andrew E. Shapiro
		Andrew E. Shapiro				Andrew E. Shapiro
		Manager						Manager

LAWNDALE CAPITAL MANAGEMENT, LLC



By:	/s/ Andrew E. Shapiro 			/s/ Andrew E. Shapiro
	Andrew E. Shapiro				Andrew E. Shapiro
	Manager


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