Kenting Berhad (KB) is a long-established chemical manufacturer in Malaysia. Over the years, share price of KB has performed well. Now, there is concern that KB's profitability and dividends may be significantly affected by the price and cost competition from new entrants into the domestic market. The firm is now considering to expand through the full acquisition of Bukenting Berhad (BB). The acquisition will be financed via a bond issue that will not significantly impact upon KB's existing credit rating and its capital structure. (a) The acquisition is expected to increase the profits of KB by a substantial amount over the next five years. Discuss the reaction of KB's shares assuming Bursa Malaysia is in the form of semi-strong inefficient and strong efficient. Specific to the acquisition of BB, your discussion should include implications for share price to reflect all available information and explanation for any conflict between random walk hypothesis and efficient market hypothesis. (25 marks)