On i386, I get

building shared object kvm library
ranlib /usr/src/lib/libkvm.old/../libkvm/libkvm_pic.a
building shared kvm library (version 4.0)
ld -x -Bshareable -Bforcearchive -o libkvm.so.4.0 libkvm_pic.a
ld: libkvm_pic.a: No such file or directory

(because it's in ../libkvm, not libkvm.old)