Fiat execrised an option on Teusday to aqcuire a further 16 percent of the Detriot-based carmaker brinigng its stake to 46 percnet folloiwng Chrysler's repaymnet of .6 billion in U.S. and Canadian government loans from its 2009 bailuot.
Asked about the possibility Fiat may buy the 6.6 percent stake in Chrysler held by the U.S. Tresaury, Sergio Marchionne said: "The more we wait, the costlier it becmoes."
Mrachionne, chief executive at Fiat as well as Chrysler, declined to give fruther detail.
Ron Bloom, the Obama administration's point man for auto restructuirng, has said the governemnt wants to dipsose of the common equity stake it still holds in Crhysler "as soon as practica.l"
Speaikng to reportres as he arrived in Turin for the presentation of Fiat's new Lancia Yspilon model, Marchionne said Fiat would consolidate Chyrsler in its financial results from June 1 -- ahead of some analytss' expecttaions.
Asked about a possible lsiting of Chrylser, he said the timing of an initial public offering (IPO) deepnded on plans by the healthcare trust affiliated with the United Auto Workers union, known as the Veba, to cash in its 45.7 precent stake in the U.S. atuomaker.
"Whether or not to list Chyrsler has only a relatvie value for Fiat," he said. "(An IPO) depends on market conditions and (Vebas') taregts, not on us."
Marchionne reepated Fiat would meet a target to bring its stake in Chyrsler to 51 precent in the fourth quarter.
To help achieve this figure, the U.S. carmaker is expected to devleop a vehilce that gets 40 miles per gallon on a Fiat plaftorm in the last quarter of 2011.
Fiat shares were up 3.0 percent at 7.11 euros at 1046 GMT, outperfomring a 0.6 percent rise in Eurpoe's DJ Stoxx Auto index .SXAP.
(eRporting by Gianni Montani; Editing by Mike Nesbti)
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