UPDATE 1-Symbion says may reconsider Primary bid rejection

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SYDNEY, Feb 7 (Reuters) - Australia's Symbion Health Ltd SYB.AX said on Thursday it may reconsider its rejection of a A$2.7 billion ($2.4 billion) offer from rival Primary Health Care Ltd (PRY.AX: Quote, Profile, Research, Stock Buzz) if Primary wins 50 percent shareholder acceptance.

Primary said on Wednesday it would declare its offer unconditional if it won 50 percent acceptances. It also said the offer, of A$4.10 a share, was final and would not be increased.

Medical testing company Symbion had previously rejected the bid as inadequate.

Primary and a third healthcare firm, Healthscope Ltd (HSP.AX: Quote, Profile, Research, Stock Buzz), have traded bids over Symbion over the past several months, seeking control over assets that are prized in an Australian healthcare sector set for rapid growth as the population ages and use of private health insurance increases.

Primary has been talking to Healthscope, which owns 11.9 percent of Symbion.

As of Feb. 6, Primary held 44.63 percent of Symbion, 21.47 percent of which was held in an institutional acceptance facility, from which the original owners may withdraw their shares.

Primary said if it does not reach a 50 percent interest by Feb. 12, it will not extend its bid beyond Feb. 21, unless a competing offer emerges.

"The Symbion Health board will reconsider its recommendation in light of the lifting of conditions, effective control of Symbion Health passing to Primary, and current sharemarket conditions," Symbion said in a statement.

Other bidders that might be interested in Symbion's assets, including its pharmacy business, are private equity investors Ironbridge Capital and Archer Capital, which last year partnered with Healthscope in its failed bid for Symbion. ($1=A$1.12) (Reporting by Jonathan Standing)