The cationic nuclear alkylation of benzene with the lactone (I) has been found to give a stereoisomeric mixture containing 4-methyl-2-phenylcyclohexyl acetic acid (II) and 4-methyl- 3-phenylcyclohexyl acetic acid (III). The former has been cyclized, reduced and dehydrogenated to 3-methyl phenanthrene. A similar condensation between the lactone (I) and toluene afforded a mixture of 4-methyl-2-o-tolyl-, 4-methyl-2-p-tolyl-and 4-methyl-3-p- ...