Updates with shares in paragraph 3 and analyst reaction in paragraphs 5 and 6

By Rishav Chatterjee

March 7 (Reuters) - Insignia Financial IFL.AX has granted access to its books to two key suitors after both Bain Capital and CC Capital raised their respective takeover bids to A$3.34 billion ($2.11 billion), marking a pivotal moment in an escalating bidding war.

Insignia said on Friday the two firms that are now vying for control of one of Australia's largest wealth management firms had increased their per-share offers to A$5 each — an 8.7% premium over their previous A$4.60 bids.

Shares in the Australian firm gained as much as 13.5% to A$4.835, lingering near the A$5 per-share offer in Sydney, to touch their highest since August, 2021.

Bain, best known in Australia for acquiring Virgin Australia IPO-VIR.AX out of administration, and CC Capital, a Wall Street-based private equity firm, now appear to have the upper hand after investment giant Brookfield entered the contest last month with a matching bid.

"A good result with two bidders in the game and both engaged", said Henry Jennings, senior market analyst at Marcustoday newsletter.

Jennings added that there might be one more rise on the bid and a "knockout" at perhaps A$5.20.

Insignia, formerly known as IOOF, oversees approximately A$327 billion in client assets, making it the third-largest player in Australia's superannuation sector.

Australia's publicly traded wealth management firms are drawing interest from investors attracted to the country's thriving pension system.

Previously, Insignia had granted all three suitors limited access to its financials.

However, with Brookfield reportedly unlikely to submit a higher offer, the company said Bain and CC Capital's revised A$5 per share bids were in the best interests of shareholders and has now allowed both firms to conduct confirmatory due diligence, expected to conclude within six weeks.

Insignia stock has surged approximately 40% since December 12, when Bain first made its approach.

Brookfield declined to a Reuters request for comment. However, The Australian, citing sources, reported that the firm is unlikely to continue bidding.

($1 = 1.5803 Australian dollars)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Arun Koyyur and Alan Barona)

((Rishav.Chatterjee@thomsonreuters.com;))