Old Mutual's [see profile] IPO plans for its U.S. business may no longer include the mutual fund arm. Today Reuters' Jessica Toonkel reports that, according to anonymous sources, Old Mutual is in talks to sell the business to Cincinnati-based Touchstone Investments [see profile], with Berkshire Capital advising on the sale.

The MFWire.com could not immediately reach Berkshire Capital president and CEO Bruce Cameron, or a spokesperson for Touchstone, for comment. A spokeswoman for Old Mutual declined to comment.

Last month Old Mutual plc CEO Julian Roberts said that the British and South African firm may push back the entire U.S. asset management arm IPO to later than 2012, because "the markets are not good" [see MFWire.com, 8/11/2011].

According to Reuters, Old Mutual boasts 18 affiliates and $260 billion in assets under management in the U.S., including $2.3 billion in 17 mutual funds. Touchstone has $7.4 billion in fund assets.

Fundster consultant Geoff Bobroff talked to Reuters about the possible deal.

"The risk for Touchstone is if they transition to their own managers, whether financial advisers will stick around," Bobroff told the wire service. 

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