--- gcc/cprop.c.mp	2012-11-29 15:49:53.120524295 +0100
+++ gcc/cprop.c	2012-11-29 15:50:01.421547832 +0100
@@ -1499,6 +1499,7 @@ bypass_block (basic_block bb, rtx setcc,
   int may_be_loop_header;
   unsigned removed_p;
   unsigned i;
+  unsigned n_latch_edges;
   edge_iterator ei;
 
   insn = (setcc != NULL) ? setcc : jump;
@@ -1510,13 +1511,12 @@ bypass_block (basic_block bb, rtx setcc,
   if (note)
     find_used_regs (&XEXP (note, 0), NULL);
 
-  may_be_loop_header = false;
+  n_latch_edges = 0;
   FOR_EACH_EDGE (e, ei, bb->preds)
     if (e->flags & EDGE_DFS_BACK)
-      {
-	may_be_loop_header = true;
-	break;
-      }
+      n_latch_edges++;
+
+  may_be_loop_header = n_latch_edges > 0;
 
   change = 0;
   for (ei = ei_start (bb->preds); (e = ei_safe_edge (ei)); )
@@ -1605,7 +1605,8 @@ bypass_block (basic_block bb, rtx setcc,
 	      && dest != EXIT_BLOCK_PTR)
             {
 	      if (current_loops != NULL
-		  && e->src->loop_father->latch == e->src)
+		  && (e->src->loop_father->latch == e->src
+		      || n_latch_edges > 1))
 		{
 		  /* ???  Now we are creating (or may create) a loop
 		     with multiple entries.  Simply mark it for
--- gcc/testsuite/gcc.dg/pr54838.c.mp	2012-11-26 14:48:43.783980854 +0100
+++ gcc/testsuite/gcc.dg/pr54838.c	2012-11-26 14:49:51.051158719 +0100
@@ -0,0 +1,24 @@
+/* PR middle-end/54838 */
+/* { dg-do compile } */
+/* { dg-options "-O2 -fno-forward-propagate -ftracer" } */
+
+void bar (void);
+
+void
+foo (void *b, int *c)
+{
+again:
+  switch (*c)
+    {
+    case 1:
+      if (!b)
+	{
+	  bar ();
+	  return;
+	}
+      goto again;
+    case 3:
+      if (!b)
+	goto again;
+    }
+}