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This bug has been copied from bug #785269 and has been proposed to be backported to 6.2 z-stream (EUS).
In POST: http://post-office.corp.redhat.com/archives/rhvirt-patches/2012-February/msg00748.html
Verify it with libvirt-0.9.4-23.el6_2.5 and it passed. The steps can be seen in comment 18 of bug 785269.
Technical note added. If any revisions are required, please edit the "Technical Notes" field accordingly. All revisions will be proofread by the Engineering Content Services team. New Contents: Previously, if the libvirt package was built with avahi support, libvirt required the avahi package to be installed on the system as a prerequisite for its own installation. If the avahi package could not be installed on the system due to security concerns, installation of libvirt failed. This update modifies the libvirt.spec file to require only the avahi-libs package. The libvirt package is now successfully installed and libvirtd starts as expected.
Since the problem described in this bug report should be resolved in a recent advisory, it has been closed with a resolution of ERRATA. For information on the advisory, and where to find the updated files, follow the link below. If the solution does not work for you, open a new bug report. http://rhn.redhat.com/errata/RHBA-2012-0342.html