KQs 3-handed - call this raise?

[maryfield48]

PokerStars No-Limit Hold'em Tourney, Big Blind is t200 (3 handed) converter

SB (t1860)
Hero (t3520)
Button (t8120)

Preflop: Hero is BB with K[img]/images/graemlins/heart.gif[/img], Q[img]/images/graemlins/heart.gif[/img].
Button calls t200, <font color="#CC3333">SB raises to t800</font>, <font color="#666666">1 fold</font>, <font color="#CC3333">Button raises to t8120</font>, SB calls t1035 (All-In).

SB is LAG-Donk. Button is Loose passive - hasn't gotten out of line at all.