LONDON, Oct 1 (Reuters) – Britain’s Serious Fraud Office (SFO) said on Thursday it was prepared to prosecute BAE Systems <BAES.L> for bribery but stopped short of formally requesting a criminal trial of Europe’s biggest defence contractor.

Legal experts said BAE could face penalties of hundreds of millions of pounds if found guilty but said that securing a conviction would be very difficult, and that both sides would probably still seek to reach an out of court settlement.

BAE is facing allegations it used bribery and corruption in arms deals in South Africa, Tanzania, Romania and the Czech Republic dating back to the 1990s.

The SFO said it intended to ask the Attorney General for permission to prosecute BAE but did not give a timeframe, saying only that it would file the necessary paperwork “when the SFO considers it is ready to proceed.”

Reuters last week quoted sources close to the case as saying that the Serious Fraud Office wanted BAE to plead guilty and agree to a substantial fine by Sept. 30 or face possible criminal prosecution. [ID:nN24478509] [ID:nLU332518]

TRACE International, a not-for-profit body that helps companies combat bribery, criticised the SFO for setting a deadline and then undermining its credibility by not moving quickly to indict BAE when the deadline was missed.

“The SFO’s strategy on the BAE matter is not at all clear,” said Alexandra Wrage, TRACE president and author of “Bribery and Extortion: Undermining Business, Governments and Security.”

LONDON, Sept 30 (Reuters) – British prosecutors are hopeful of an imminent conclusion to the long-running investigation into allegations of bribery and corruption by BAE Systems <BAES.L>, Europe’s biggest defence contractor.

Reuters last week quoted sources close to the case as saying that the Serious Fraud Office (SFO) wanted BAE to plead guilty and agree to a substantial fine by Sept. 30 or face possible criminal prosecution. [ID:nN24478509]

Although no formal announcement is expected on Wednesday, a spokesman for the SFO told Reuters that the organisation had hopes for a swift conclusion.

“The SFO is endeavouring to achieve a resolution as quickly as possible and the investigation continues,” the spokesman told Reuters.

A spokesman for BAE would give no indication on whether the process was near an end after more than five years.

“The company is working with regulators towards that end (the conclusion of the investigation) and is providing access to people, information and premises whenever requested,” he said.

The SFO’s probe involves arms deals in the Czech Republic, Romania, South Africa and Tanzania going back to the 1990s.