The combined action of triethyl orthoformate and aniline upon Meldrum's acid or 5-aza-5-phenyl-1-oxaspiro[5,5]undecan-2,4-diones gives their anilinomethylene derivatives (2, 5), which react with methyleneactive nitriles in dimethylformamide to give substituted 2-hydroxy-6-oxo-1,6-dihydro-pyridines (7) in excellent yields.