Big \& Strong Berhad (BSB) is contemplating the takeover of Small \& Weak Berhad (SWB). The current stock price of SWB is RM4.00. BSB decides to offer a takeover bid price of RM5.50 for SWB. Why is the acquirer, BSB, willing to pay a premium over market value? More specifically, two questions have to be answered - firstly, why does BSB feel SWB is worth more than the current price of RM4.00; and secondly, even if BSB believes so, why not just offer the current price of RM4.00? [5 marks]