Ashcroft's company Fordwat is Watford's largest shareholder and a club statement said a deal would involve an offer for the whole business.
"[Talks are] at a very early stage and there can be no certainty that an offer for the company will be forthcoming," the statement added.
"A further announcement will be made in due course."
Fordwat possesses a little more than 37% of the club's shares, former chairman Jim Russo's Valley Grown Salads has almost 30% and Graham Simpson, also an ex-chairman, owns 16.79%.
Source: BBC Sport
Source: BBC Sport