problem building gcc on Solaris 8

[Dinesh Somani <dinesh dot somani at tibcofinance dot com>]

Was trying to: build and install gcc 2.95.3...

Summary:
  make bootstrap stops, looking for ../libiberty/libiberty.a

Env:
  Solaris 5.8
  gcc version 2.7.2.2 (already exists)
  make aliased to gmake version 3.75

Steps I took so far:
  0. cd <blah>
  1. download unzip untar
  2. cd gcc-2.95.3
  3. mkdir objdir; cd objdir
  4. ../gcc/configure --enable-threads --enable-languages=c++
  5. make bootstrap

This is where it all comes crumbling down:
<snip>
/usr/gnu/sun4-58/bin/gcc -c  -DIN_GCC -DHAIFA -DSVR4  -g   -DHAVE_CONFIG_H
-I. 
-I../gcc -I../gcc/config -I../gcc/../include ../gcc/c-common.c
/usr/gnu/sun4-58/bin/gcc -c  -DIN_GCC -DHAIFA -DSVR4  -g   -DHAVE_CONFIG_H
-I. 
-I../gcc -I../gcc/config -I../gcc/../include ../gcc/c-iterate.c
/usr/gnu/sun4-58/bin/gcc  -DIN_GCC -DHAIFA -DSVR4  -g   -DHAVE_CONFIG_H  -o
cc1 to
plev.o version.o tree.o print-tree.o stor-layout.o fold-const.o  function.o
stmt.o
 except.o expr.o calls.o expmed.o explow.o optabs.o  intl.o varasm.o rtl.o
print-r
tl.o rtlanal.o emit-rtl.o genrtl.o real.o  dbxout.o sdbout.o dwarfout.o
dwarf2out.
o xcoffout.o bitmap.o alias.o gcse.o  integrate.o jump.o cse.o loop.o
unroll.o flo
w.o stupid.o combine.o varray.o  regclass.o regmove.o local-alloc.o global.o
reloa
d.o reload1.o caller-save.o  insn-peep.o reorg.o haifa-sched.o final.o
recog.o reg
-stack.o  insn-opinit.o insn-recog.o insn-extract.o insn-output.o
insn-emit.o lcm.
o  profile.o insn-attrtab.o sparc.o getpwd.o  convert.o  mbchar.o
dyn-string.o spl
ay-tree.o graph.o sbitmap.o resource.o hash.o c-parse.o c-lang.o c-lex.o
c-pragma.
o c-decl.o c-typeck.o c-convert.o  c-aux-info.o c-common.o c-iterate.o
obstack.o a
lloca.o       ../libiberty/libiberty.a
gcc: ../libiberty/libiberty.a: No such file or directory
*** Error code 1
make: Fatal error: Command failed for target `cc1'
Current working directory <blah>/gcc-2.95.3/objdir
*** Error code 1
make: Fatal error: Command failed for target `bootstrap'

What am I missing here ? Would appreciate your help. 

Thanks
Dinesh