TORONTO (Bloomberg) — Canadian stocks rose on optimism that takeovers will increase as investors including Microsoft Corp. Chairman Bill Gates offered to take Four Seasons Hotels Inc. private and Kinross Gold Corp. agreed to buy Bema Gold Corp.Income trusts such as Canadian Oil Sands Trust also advanced amid speculation that the government’s plan to tax the entities will spark takeovers.

“More takeouts and privatisation are likely to occur,” said Marc Lalonde, who oversees $1.3 billion at Louisbourg Investments Inc. in Moncton, New Brunswick. The Four Seasons bid is a reminder that “there’s still an enormous amount of capital looking for opportunities for privatisation”.

The Standard & Poor’s/TSX Composite Index added 94.24, or 0.8 percent, to 12,333.28. The index has rebounded for three straight days after posting the biggest drop in almost five months on November 1, when shares of income trusts plunged on the proposed tax change.

Four Seasons, the manager of 74 luxury properties, surged C$20.95, or 29 percent, to C$93.06 for the biggest gain in the S&P/TSX. Gates’ Cascade Investments LLC and Prince Alwaleed Bin Talal offered $82 a share in cash, Four Seasons said. The bid is 28 percent higher than the company’s closing price in US markets of $63.87 on November 3.

Bema Gold rallied 57 cents, or 11 percent, to C$5.97 for the second-best performance in the S&P/TSX. Kinross, Canada’s third biggest gold producer, agreed to buy rival Bema for C$3.19 billion in stock.