Spiro-fused beta-lactam oxadiazoline 2a was prepared from acetone semi
carbazone in five steps. Thermolysis of 2a at 100 degrees C in benzene
led to carbene 3a, which cyclized to the benzo-fused oxapenem derivat
ive 4 via intramolecular OH insertion. Compound 10, with a beta-lactam
ring linked to an azetidinedione ring, was a minor product.