Mumbai, Jan. 27: Now that the fight for Corus has entered the final lap, the question that’s swirling around is how far will the Tatas go. Industry observers feel Tata Steel is unlikely to be overtly aggressive in pitching for the Anglo-Dutch steelmaker as it could hurt its financials.

Despite reports saying that Tata Steel is prepared to bid up to 600 pence a share, analysts feel that the company could draw a line at around 570 pence a share. Even at that price, the company will be “overpaying’’. The opinion among a large section of observers is that Ratan Tata is unlikely to go up to 600 pence, which would value Corus at over $11 billion.

“The earlier estimate was that Tata Steel will not go beyond 535-550 pence per share. But the way things have moved, Tata Steel could raise the bar a bit more. They will, however, be mindful of the impact that an aggressive bidding war could have on its balance sheet,” an analyst from a domestic brokerage said.

While Tata Steel officials were not available for comments, sources close to the company had earlier denied reports that its bid could go up to 600 pence a share.

Analysts feel that India’s largest private steel maker could first raise its bid to 530 pence a share and wait for the response from Corus before taking its next step. In recent times, there had been quite a lot of speculation on the possible impact of a bidding war on Tata Steel’s financial. The speculation gained momentum once Corus shares started surging on the London Stock Exchange.

On Friday, the Corus share ended at 558 pence, sharply higher by 5 pence over its previous finish. Observers have estimated a payback time of four to five years for Tata Steel if it emerges successful in the battle for Corus. With the Tatas expected to up the offer price, it is feared that this period could be longer in the event of Tata Steel’s bid surpassing the 550-pence-a-share mark.