We were in a good position to get him. The deciding factor was when Guardiola decided that he "absolutely must have him". Because Bayern are a bit short in that midfield department, obviously, and Thiago is the missing link.
Same thing probably happened with what had happened with Lucas Moura last season. We put bids in, but either the club wants more (like what happened last year, from what I remember, our bid for Moura was accepted) or the player is hankering on a deal elsewhere. Guardiola knows him, I believe his brother is also the guy's agent. When you have factors like that, United can't compete.
I was a bit excited when Guardiola decided to leave Barcelona, because it would be interesting to see what he would do himself. A challenge. The Bayern job isn't a challenge. It's a free ride. They've already got Gotze, they've got Alcantara now and they'll be getting Lewandowski next season. They've already got a side that has won the Champions League and looked impressive whilst doing so. Some challenge.
Anyway, Fabregas: Won't be too gutted if he doesn't end up at United. He won't go back to Arsenal either, because that would be almost like admitting defeat on his part.