Property fund manager MacarthurCook has urged shareholders who are willing to accept the takeover offer by AIMS Securities to hold off on their decision until the last moment, because it is still in discussions with a number of parties about a higher bid.

"Prior to, and since the AIMS offer, the board has been in discussions with a number of parties regarding potential transactions, including potential acquisitions by MacarthurCook, sales of assets and entry of new investors on the MacarthurCook share registers," the company said yesterday in a target statement.

It did not say who it was in discussions with.

AIMS has made an offer of 35 cents a share for MacarthurCook, which will expire at 7pm on 17 July 2009.

"If you were to accept the offer, your board recommends that you not accept until the end of the offer period to allow you to take advantage of any superior proposal that may emerge," MacarthurCook said.

MacarthurCook has rejected the bid because it believes the offer undervalues the company and lacks details about the future strategy for the company.

The directors of the firm, which together hold a stake of almost 14 per cent, have indicated a vote against it on its current terms.

AIMS has been buying shares in recent weeks and now holds a 35 per cent interest in the company.

Other shareholders include former Property Funds Australia managing director Chris Morton, who holds an 8 per cent interest in the firm, and financial services group IOOF, which holds a stake of 15 per cent.

IOOF is not allowed to sell until mid next year, unless MacarthurCook's board supports a takeover offer.

The transaction drew much criticism at the time because MacarthurCook had not sought shareholder approval before placing the shares with IOOF. It was also under offer by AMP, which made a bid of $1.35 per share.