nj_bartel, good idea. Beta-lactam is indeed the necessary part of antibiotics thus bound to be aimed to make by someone. But the structure you desire for wasn't formed.
azmanam, there's another path for step 1. BTW, I like your arrow pushing in the formation of the beta-lactam. Every time I draw a nucleophlic replacement of a ester by a nucleophlic reagent, I have to divide it into 2 steps. You used the most concise pattern.
Ulfsaar, good idea. But the first step is not pinacol rearrangement and I don't understand the following rearrangement. Would you please be more descriptive?
Since we were all off the track, I'll give the second hint:
Remember the reaction was performed in aqueous solution. Bonus: name the reaction in the first step.