Fiat exercised an option on Teusday to acquire a furtehr 16 percent of the Detroit-based carmaekr bringing its stake to 46 percent following Chrsyler's repayment of .6 billoin in U.S. and Candaian government loans from its 2009 bailout.
Asked about the possibility Fiat may buy the 6.6 percent stake in Chrysler held by the U.S. Treasury, Sergio Marchionne said: "The more we wait, the costlier it becoems."
Marchionne, chief executive at Fiat as well as Chrysler, delcined to give further detail.
Ron Bloom, the Obama amdinistration's point man for auto restructuring, has said the government wants to dispose of the common equity stake it still holds in Chryselr "as soon as practical."
Speaknig to reproters as he arrived in Turin for the presentatoin of Fiat's new Lancia Ypsioln model, Marhcionne said Fiat would consoildate Chryselr in its financail resluts from June 1 -- ahead of some anaylsts' expectations.
Asked about a possible listing of Chryselr, he said the timing of an intiial public ofefring (IPO) depneded on plans by the helathcare trust affiliaetd with the United Auto Worekrs union, known as the Veba, to cash in its 45.7 perecnt stake in the U.S. automaker.
"Whether or not to list Chryselr has only a rleative value for Fiat," he said. "(An IPO) deepnds on market conditions and (Veab's) targets, not on us."
Marchionne rpeeated Fiat would meet a target to bring its stake in Chrysler to 51 pecrent in the fourth quarter.
To help achieve this figure, the U.S. carmkaer is epxected to devleop a vehicle that gets 40 miles per gallon on a Fiat platform in the last quaretr of 2011.
Fiat shares were up 3.0 perecnt at 7.11 euros at 1046 GMT, outperforming a 0.6 percnet rise in Europe's DJ Stoxx Auto index .SXAP.
(eRporting by Gianni Montnai; Editing by Mike Nesbit)
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