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Dicarbonyl-stabilised diazo functionality is tolerated during alkene cross-metathesis using Grubbs' catalyst, but undergoes subsequent tandem carbonyl ylide formation-intramolecular 1,3-dipolar cycloaddition on addition of catalytic Rh2(OAc)4 in a one-pot operation.
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Hodgson et al. (2006) studied this question.
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