A facile synthesis of aryl α-keto esters is reported involving the rearrangement of aryl cyanohydrin carbonate esters induced by the α-carbanion to the nitrile group generated by LDA. However, under similar conditions, an o-benzyloxycyanohydrin carbonate esterrearrangedvia a domino reaction leading to 2-phenylbenzofuran-3-carboxylic acid.