UK prosecutors expect to conclude Barclays Qatar probe by year-end

By Kirstin Ridley and Anjuli Davies

LONDON, May 19 (Reuters) - Britain's Serious Fraud Office (SFO) expects to conclude its inquiry into Barclays (LSE: BARC.L - news) by the end of the year over undisclosed payments made to Qatari investors during an emergency 2008 fundraising, a London court heard on Thursday.

The SFO expects to reach a decision on whether to bring any criminal charges early next year in the four year investigation into how the bank raised billions of pounds at the height of the credit crisis to avoid a state bailout, Andrew Onslow, representing the SFO, told the High Court.

The announcement was made during a hearing in a civil case brought against the bank by PCP Capital Partners, the investment vehicle of dealmaker Amanda Staveley, which is claiming around $1 billion in damages for alleged "fraudulent misrepresentation".

In a row over whether Gulf investors received the same deal terms for participating in the Barclays fundraising, PCP - which represented Abu Dhabi investors in 2008 - is suing the bank over allegedly "sham" payments the bank made to Qatari investors.

Barclays on Thursday asked the court to postpone the civil case until the SFO concludes its criminal investigation, alleging it risks being accused of perverting the course of justice by re-interviewing suspects facing parallel SFO inquiry.

The bank has been due to file its defence to the claim.

"Barclays considers the claim (by PCP) to be misconceived, but Barclays cannot be expected to defend the claim with one - or indeed both - hands tied behind its back," the bank said in court documents.

PCP labelled Barclays's argument a "misconceived and cynical attempt" to avoid responding to "grave and serious" allegations. (Editing by Mark Potter)