Not many aftermarket heads will work on a small bore 260. The valves simply won't clear.
The 260 had 1.59" intake and 1.39" exhaust valves and a 3.80" bore.
On 4" bore engines you can go all the way to 2.02 intake valves (with inline valves). On a 260, you have 0.10" less bore on each side, so theoretically, if a 2.02" valve fits a 4.00" bore, then a 1.82" valve would fit a 3.80" bore.
I don't know how it works out in practise, but I don't think you're limited to the stock valves. Stock 289 heads with 1.78/1.48 probably fit fine and the 54cc would not reduce compression ratio too much either (and may even increase CR after milling them). They're not exactly high flow heads either, but can be improved with some porting.
Maybe even 1.84"/1.54" valves (stock 351W) would fit but most stock heads with those valve sizes (351W, cast iron GT40, GT40P) have rather large compression chambers, which would result in a very low compression ratio when used on a 260. You could of course machine 289 heads for these valves.
OK, it doesn't make much sense to use a 260 as a base for a performance engine, but then again, we're not in this hobby because it makes so much sense
. It would be nice to see a suprisingly powerful 260 for a change.