Australia's Primary ups stake in target Symbion

SYDNEY, Aug 13 (Reuters) - Australian Health services provider Primary Health Care Ltd. (PRY.AX: Quote, Profile, Research, Stock Buzz) increased its stake in bid target Symbion Health Ltd. (HSP.AX: Quote, Profile, Research, Stock Buzz) to 17.8 percent on Monday, moving closer to the level that would trigger a full takeover.

Symbion has already accepted a A$2.9 billion ($2.4 billion) bid by a consortium led by rival hospital operator Healthscope Ltd. (HSP.AX: Quote, Profile, Research, Stock Buzz).

Executives from both firms met investors in Asia on Monday to sell the deal and downplay suggestions Primary may either try to block the deal or try to swap its shareholding for some Symbion assets.

Primary raised its stake from 16.18 percent to 17.78 percent, according to a stock exchange filing on Monday. Primary cannot buy more than 19.9 percent without mounting a full takeover.

Sources close to the deal said Healthscope remained confident of winning enough support for its deal and said Primary chief Edmund Bateman would have to make a significantly higher offer to threaten the process.

"He can't force anyone to sell those assets. If he did come in with an offer for certain assets it would have to be an unbelievable offer so it did not affect the synergies of the Healthscope transaction," one source told Reuters.

"It may come down to a bit of a proxy battle. But they

(Symbion-Healthscope) are very confident where they sit at the moment."