Scottish Re Group Ltd., which said in July it would consider a possible sale, yesterday said it has received a number of potential bid proposals and is reviewing them.

Selected parties will be invited to a second round, the Bermuda-based company said. A transaction could be announced as early as mid- to-late October or early November, Scottish Re said. The reinsurer has operating companies in Bermuda; Dublin, Ireland; Grand Cayman; London and Windsor, England; and Charlotte, North Carolina.

The news, coming after months of uncertainty over the company?s future, sent Scottish Re shares up $1.13, or 12 percent, to $10.44 in afternoon trading on the New York Stock Exchange.

Scottish Re also said yesterday it has received three written proposals for possible financing and expects to receive several additional proposals in the near future. The company plans to raise between $150 million (?118 million) and $250 million (?196.6 million) to reduce short-term liquidity pressures.

One company that may be interested in acquiring Scottish Re is Germany?s Hannover Re AG. Hannover Re?s chief executive raised expectations that it might be a bidder when he said yesterday he couldn?t comment on whether he had signed a non-disclosure agreement with Scottish Re, which he would have to do if it were a potential bidder.

Reuters, quoting a source, said Hannover Re had made an ?opening indicative offer?, which would enable it to have access to confidential Scottish Re financial information and had signed a confidentiality agreement.

Reuters also said French reinsurer Scor is also interested in acquiring Scottish Re and has signed a confidentiality pact, according to a report in newspaper Handelsblatt. Swiss Re, meanwhile, distanced itself from speculation it may be among the bidders.

Its chief financial officer, Ann Godbehere, told Reuters in an interview in Monte Carlo that Scottish Re had grown very quickly in recent years.

?The only way you would win that volume of business is by being very aggressive on price,? Godbehere said.

Scottish Re had also been aggressive when acquiring a number of life reinsurance portfolios, Godbehere said.

?So it shows a difference in perception about some of this U.S. risk,? Godbehere said. Bermuda-based XL Capital and Munich Re on Sunday also ruled themselves out of bidding for Scottish Re.

Scottish Re?s troubles came to light in July, when its CEO departed as the company announced it would report a steep second-quarter loss. The company?s share price fell 75 percent that day, moving as low as $2.95 (?2.32).

The following week the company reported a net loss of $121.6 million (?95.6 million), compared with profit of $1.6 million (?1.26 million) a year earlier. The company said the loss was due to a number of factors, including a tax expense of $89 million (?70 million) related to a valuation allowance established on deferred tax assets. The company also had an $8 million (?6.3 million) drop in premium accruals in North America and external retrocession and reserve adjustments of approximately $21 million (?16.5 million).

Following the second-quarter performance, the company appointed investment bankers to assist with near-term liquidity pressures, help evaluate strategic alternatives and identify potential new capital sources.