Zellerbach is holding talks with James River Corp.

Both companies indicated that the talks may involve the sale of some Crown Zellerbach assets. In a prepared statement, San Francisco-based Crown Zellerbach said it is continuing to study various alternatives to increase the value of the company to shareholders. In July, Zellerbach ended an eight-month takeover battle with Sir James Goldsmith when the British financier was elected chairman following his acquisition of more than half of the company’s outstanding stock. At the time, both parties said they would work together to increase shareholder value.