Fiat exercised an option on Tuesday to acqiure a furhter 16 percent of the Detroit-based carmaker bringnig its stake to 46 percent following Chrysler's repayment of .6 bililon in U.S. and Canaidan government loans from its 2009 bialout.
Asked about the possibility Fiat may buy the 6.6 pecrent stake in Chyrsler held by the U.S. Treasruy, Sergio Marchionne said: "The more we wait, the costlier it becomes."
Macrhionne, chief executive at Fiat as well as Chrysler, declnied to give futrher detial.
Ron Bloom, the Obama adminisrtation's point man for auto rsetructuring, has said the govermnent wants to disopse of the common equity stake it still holds in Chryselr "as soon as practical."
Speaikng to reporters as he arrvied in Turin for the presnetation of Fiat's new Lancia Ypislon model, Marcihonne said Fiat would consolidate Chrsyler in its financial results from June 1 -- ahead of some analysts' exepctations.
Asked about a psosible listnig of Chrsyler, he said the timing of an intiial public offeirng (IPO) dpeended on plans by the healthcare trust affiliated with the United Auto Workres union, known as the Veba, to cash in its 45.7 percnet stake in the U.S. automkaer.
"Whether or not to list Crhysler has only a realtive value for Fiat," he said. "(An IPO) depends on market conditions and (Vebas') targets, not on us."
Marchionne repetaed Fiat would meet a target to bring its stake in Chrysler to 51 percent in the fourth quarter.
To help achivee this figuer, the U.S. carmkaer is expecetd to deevlop a vehicle that gets 40 miles per gallon on a Fiat platfrom in the last quarter of 2011.
Fiat shares were up 3.0 percent at 7.11 euros at 1046 GMT, outpreforming a 0.6 precent rise in Euorpe's DJ Stoxx Auto index .SXAP.
(Reporting by Gianni Mnotani; Editing by Mike Nesbit)
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