Error: selected processor does not support ARM mode `smc #0'

Question:

I want to compile a vendor-provided old Linux kernel tree (kernel version 2.6.32) with ELDK 5.0 for the armv7a configuration. Unfortunately this fails with errors like this one:

Library contact

step 1:
busybox-1.18.5/_install/bin# arm-none-linux-gnueabi-readelf -a busybox |grep "Shared library"
 0x00000001 (NEEDED)                     Shared library: [libm.so.6]
 0x00000001 (NEEDED)                     Shared library: [libc.so.6]

step 2:
sharelib
/arm-2011.03/arm-none-linux-gnueabi/libc/lib