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Palladium diammine dichloride and 1 mole equivalent of 1 ,2bis(diphenylphosphino)ferrocene (dppf) were suspended in acetonitrile at reflux for 4 hrs. A basic gas (believed to be ammonia) was evolved during the reaction. The product was filtered off at room temperature and dried. The product contained 7.29percent Fe and 14.44percent Pd by standard wet chemical analysis and was identified as Pd(dppf)CI2 by infra-red spectroscopy.