COS from L2 - L1B OR go for fresh L-1B Petition/Application?

Dear Sir,

Currently I am in India Having L2-EAD working for Company-A in India. The Same company-A has now transferring me to US and I am ready to start assignement in US from 7th of Jan 2013 based on L2-EAD. However, my employer wants to process L-1B. So my question with this regard is:

	While I am in US, can the employer can request for COS (change of status) from L2 to the L1?

	If the petition is approved but the change of status is denied then can I also lose my L2 visa status? If NO, my employer need to go for L1- Petition and I would have to depart US to get an L1 visa stamp.  In that case, Can I go to Mexico or Canada to get the stamping done with L2? 

What is the better option in my case?

Thanks in advance.