Zellerbach and Goldsmith Reach a Truce

A truce has been reached in the five-month battle between Crown Zellerbach and Sir James Goldsmith, the British financier who has said he wants to take over one of the nation’s largest paper products companies.

In a joint release Sunday, Goldsmith and William T. Creson, Zellerbach’s chairman, said they have agreed to work together on the company’s planned restructuring and drop litigation pending between them.

Creson also said that the board will elect Goldsmith a director today without waiting for the tabulation of votes at Zellerbach’s annual stockholders’ meeting.

Will Aid in Restructuring

They also said that Goldsmith has agreed not to buy any more Zellerbach stock, at least for now. Goldsmith owns a little more than 20% of Zellerbach’s 27.2 million outstanding shares and has been accumulating the stock since last December.

The agreement calls for Goldsmith’s investment company, General Oriental Securities, to work with Zellerbach on its restructuring. The plan to break the company into three units was announced April 25 in an effort to thwart Goldsmith’s takeover moves.

The new agreement calls for Goldsmith to give 10 days’ notice before buying more Zellerbach shares or to wait 48 hours after Zellerbach files its registration statement with the Securities and Exchange Commission on its restructuring.