UPDATE 2-Australia's Symbion says may recommend Primary bid

(Recasts to lead with Symbion, adds comment)

By Ben Wilson

SYDNEY, Feb 11 (Reuters) - Australia's Symbion Health Ltd SYB.AX said it will likely back Primary Health Care Ltd's (PRY.AX: Quote, Profile, Research, Stock Buzz) A$2.7 billion ($2.4 billion) takeover bid, moving Primary closer to winning a long-running battle for the medical testing firm.

Symbion said on Monday it would recommend the offer if Primary secured a stake of more than 50.1 percent versus the 49.7 percent Primary said it held as of Feb. 8.

"It appears to be the end for Symbion," said Rob Patterson, managing director of Argo Investments, which owns Symbion and Primary stock and supports the Primary bid, which Symbion had previously rejected.

Primary has been chasing Symbion for more than a year and has recently been tussling with private hospital operator Healthscope Ltd (HSP.AX: Quote, Profile, Research, Stock Buzz) for lucrative assets in an Australian healthcare sector set for rapid growth as the population ages and use of private health insurance increases.

Primary last week declared its offer for Symbion final and said if it secured a majority interest in Symbion by Tuesday, it would make the bid unconditional.

Symbion said its reasons for initially rejecting Primary's cash bid had changed, including its view on relative value after the recent share market fall.

It said that if the offer became unconditional, and subject to Primary securing the requisite funding for the deal, it would recommend shareholders accept the offer.