Primary extends A$2.7bln bid for Symbion to Mar 11

MELBOURNE, Feb 21 (Reuters) - Primary Health Care Ltd (PRY.AX: Quote, Profile, Research, Stock Buzz) extended its A$2.7 billion ($2.5 billion) bid for medical testing and pharmacy group Symbion Health Ltd SYB.AX to March 11 on Thursday, as it closed in on a full takeover.

The offer of A$4.10 a share had been due to close on Thursday. Primary was poised to take full control after its main opponent, private hospitals operator Healthscope Ltd (HSP.AX: Quote, Profile, Research, Stock Buzz), bowed out of a 13-month fight for Symbion on Wednesday and gave up its 11.9 percent stake in the group.

That helped boost Primary's stake in Symbion to 80.3 percent. The medical centres group needs to get to 90 percent, at which point remaining Symbion shareholders would be required to sell their shares.

Shares in Primary jumped 6.2 percent to A$6.90, while Healthscope rose 1.9 percent, outperforming a 1 percent rise in the broader market. Symbion last traded flat at A$4.08, 2 cents below the offer price.

Healthscope was thwarted twice in bids for Symbion last year, once by Primary and then by an adverse tax ruling. And on Wednesday it gave up on talks to buy Symbion's medical testing labs in the states of Victoria and Western Australia.

Managing Director Bruce Dixon said Healthscope decided to give up on chasing Symbion's businesses because it had been a distraction for too long, forcing it to pass up on other opportunities.

"Eighteen months of trying to do a deal was enough for the company. We were simply not confident of being able to acquire the assets at a reasonable price," Dixon told analysts and reporters at its results briefing on Thursday.

"It's time to move on," he said. ($1=A$1.09) (Reporting by Sonali Paul)