Pedro Diniz Takes Stake in Prost Team (updated)

Brazilian driver Pedro Diniz, son of a multi-millionaire supermarket owner, purchased a "significant" stake in the Prost Formula One team on Thursday.

Prost failed to score a point last season and Alain Prost, who remains the team's president and majority shareholder, had vowed to increase the team's budget and raise its performance.

Pedro Diniz raced for the Sauber team in 2000 but will not drive for Prost next season, taking a managerial role instead.

"The alliance of Prost Grand Prix with Pedro Diniz is excellent news for the team," Alain Prost said in a statement.

"It widens our commercial objectives and reflects our strategy, which is to become truly international. In the short terms, these new funds will be aimed at increasing our budget."

It is not clear who will partner French driver Jean Alesi in 2001 after German Nick Heidfeld left for Sauber.

"Obviously Alain gave me the option of driving for Prost next season," said Diniz. "It was a hard decision to make because I am a driver and I love racing.

"Since we have made a big investment in Prost Grand Prix, I have to think about long-term plans for my future and commit entirely to the success of the team."

Diniz, 29, has not won a Grand Prix in six years.

"I am delighted because I have found in Pedro Diniz and his family not only a solid business partner for my team but also a great group of people and friends," Alain Prost said.

"Pedro and his father Abilio share entirely my views and ambitions on the future of Prost Grand Prix."

Autosport magazine said earlier on Thursday that Abilio would take a stake of up to 40 percent in the Prost team.

Following the disastrous 2000 season Prost replaced their works Peugeot engines with Ferrari V10s for 2001.

Earlier this month they appointed Spaniard Joan Villadelprat as managing director and Frenchman Henri Durand - formerly chief engineer of aerodynamics at McLaren - as technical director.

Villadelprat has worked with several teams, including a spell as Ferrari chief mechanic, McLaren and Benetton.

The 45-year-old left Benetton last year after being with them as operations director when Michael Schumacher won two successive titles in 1994 and 1995.

Prost said the Spaniard would be in charge of all operations and day-to-day running of the team while owner Alain Prost would concentrate on overall supervision and global strategy.