Tarmac, the building materials group that broke off merger talks with rival Aggregate Industries, yesterday announced it had received a new bid approach from an undisclosed company.

While some speculation of CRH as a bidder led to a decline in the Irish group's share price, analysts in Dublin were sceptical that CRH was the bidder, saying French group Lafarge and Vulcan of the US were the most likely suitors.

However, analysts said CRH may hope to benefit from any disposals that might arise following a Tarmac takeover, particularly if the British group's operations on the East coast of the US came on the market.

CRH shares fell by more than three per cent yesterday, closing 61 cents lower at #18.10 (£14.25), reflecting concerns in the market that a bid for Tarmac could lead to a fund-raising.

A spokesman for CRH declined to comment, saying the company did not respond to market speculation.

Tarmac, which in July demerged its construction business, Carillion, was forced to issue a statement after a jump of more than 10 per cent in its share price. By the close, Tarmac's shares had soared 34.5 per cent (or 123p) to 480p, valuing the group at more than £980 million. Analysts said that one of the most likely bidders was Pioneer of Australia.

Other possible bidders are Hanson, CVC Capital Partners, a private equity firm, and Vulcan Materials, the US heavy building materials group.

In Dublin, on analyst said that it is " not inconceivable that CRH would have some interest. But financially it would be a very big bite."

CRH has spent heavily on acquisitions to date this year and is generally considered to be in consolidation mode.