LONDON, July 13 (Reuters) - British newspapers reported the following business stories on Sunday. Reuters has not independently verified these media reports and does not vouch for their accuracy.

Sunday Times:

BANKS CASH IN AS MOUCHEL TAKES 500 MLN STG ROAD TO MARKET

Mouchel, the road repairs and outsourcing company, is believed to have appointed investment bank Rothschild to explore a stock market flotation or trade sale.

The company, swallowed by its banks during the financial crisis, is plotting a comeback that could value it at up to 500 million pounds.

BESTWAY EMERGES AS FAVORITE FOR CO-OP GROUP'S PHARMACIES

Bestway Group is expected to be named the preferred bidder this week for the 700 pharmacies put up for sale by the Co-operative Group. Bestway, which was competing against the likes of Lloyds Pharmacy, Alliance Boots and Carlyle, could pay about 600 million pounds.

GERMANY DRAWS UP DOSSIER TO CURB POWER OF GOOGLE, OTHERS

Germany's Federal Cartel Office has drawn up a 30-page document with proposals that would muzzle Google if Berlin judged it too influential.

ARRIVA TO JOIN BATTLE FOR EAST COAST RAIL LINE

Arriva, the international arm of Germany's Deutsche Bahn, has submitted plans for a new service linking West Yorkshire and Lincolnshire to London.

LLOYDS-OWNED TECH COMPANY EYES AIM LISTING

ULS Technology, 38-percent owned by the buyout unit of Lloyds Banking Group, is working with stockbrokers Numis on a possible AIM listing that could value it at up to 50 million pounds.

PATRON CAPITAL IN TALKS TO BUY PETROL STATIONS

Patron Capital, owner of the Powerleague football chain, is in talks to buy 450 Murco petrol stations across Britain for up to 200 million pounds.

PRIORY IN BID TO BUY RIVAL VOYAGE CARE FOR 400 MLN STG

Priory Group, owner of a chain of clinics known for treating celebrities' addictions, is in talks to buy its smaller rival Voyage Care for about 400 million pounds.

Sunday Telegraph:

PAYDAY FIRMS FACE CAP AS REGULATOR ACTS TO CURB PROFITS

Britain's financial regulator, the Financial Conduct Authority, is preparing to impose a cap on the amount of interest charged by payday lenders in a bid to ease fears about profits in the sector. As early as Tuesday, the watchdog will set out details of an industry consultation which will lead to a cap being in place by the start of next year.

FRANCE HAS OPTION TO UP STAKE IN EUROSTAR

France has an option to buy the UK government's 40 percent holding in Eurostar if a process to find another buyer is inconclusive, it has emerged.

Mail on Sunday:

CO-OP GIVES BANK 100 MLN STG TO HELP FILL 1.5 BLN SHORTFALL

The Co-operative Bank has received a 100 million pound cash injection from its former parent as part of attempts to fill a 1.5 billion pound black hole.

BRITISH BUSINESS BANK TO PUT UP 10 MLN STG VIA PEER-TO-PEER LENDER

The government-owned British Business Bank will next week begin lending 10 million pounds through peer-to-peer lender RateSetter.

Financial Times:

$3.5 BILLION PULLED OUT OF FIDELITY FUNDS

Fidelity and Capital Group, the largest active fund managers, are losing market share to index trackers and niche rivals as changing investor demands reshape the $30 trillion mutual fund industry.

BOE EYES CURBS ON USE OF COCO BONDS

The Bank of England said it may limit the ability of a bank to use coco bonds when calculating its leverage ratio, or even prevent their use in the ratio altogether.

Sunday Express:

JIGSAW PLOTTING INTERNATIONAL EXPANSION

British fashion retailer Jigsaw, owned by the Robinson family, plans to open three international stores this year as part of its plan to expand in Asia, Europe and the Middle East.

CARE UK PLANNING 170 MLN STG INVESTMENT

Care UK, owned by private equity firm Bridgepoint, is investing more than 170 million pounds in building 26 new care homes, which will create more than 1,000 new jobs, as part of major expansion plans.

BT TO RING THE CHANGES BY RE-ENTERING MOBILE PHONE MARKET

British Telecom is set to return to the mobile phones market after a 13-year gap when it unveils its plans for a business-focused service on Thursday.

(Reporting by Martinne Geller; Editing by Mark Potter)