Who would Gladbach go for now, i take it Rose won't go back otherwise fans would riot. I know there were rumors of Xabi Alonso last year and apparently he's left his job at Sociedad's second team but would be a risk.
But what is it with Favre and pulling out of deals at the last minute, he did it with Crystal Palace last summer as well.
Favre just seems to have a very fickle personality. It was said about his first tenure at Gladbach that Eberl had to talk him out of resigning several times. It wouldn't surprise me if he had shown genuine interest in the Gladbach job, but then came up with some doubts at the last minute. Otherwise it would be quite weird for the club to let the rumors go this far. Fans will be disappointed no matter who they sign now.
And I don't think there are any obvious choices anymore.
There are a few coaches out there you'd expect to give some stability, but not much in terms of football, like Sandro Schwarz, Pal Dardai, Markus Weinzierl, Manuel Baum, Markus Gisdol, Heiko Herrlich - they have enough experience that one could hope they will deliver a stable season, but they aren't necessarily known for nice football.
Bruno Labbadia is a bit of a wild card he surprised a lot of people at Wolfsburg, but then had a falling out with Schmadtke and after that he got Hertha'd. Löw could theoretically be a candidate, too. At least in the papers.
In the lower leagues there's Hamburg's Tim Walter, who plays the kind of football Gladbach want to see, so maybe they could be tempted to buy him out. Dortmund's u23 coach also looks promising and supposedly had an offer from Augsburg, but word was he's going to stay next season. However Gladbach are probably in too a delicate situation, to make such a gamble.
Then there's coaches like Farke or Hoeneß, who played some decent football at Hoffenheim/Norwich, but ultimately failed. I have a feeling this kind of category is likeliest, because playing decent football is always important at Gladbach. A progressive coach from Switzerland/Austria/Netherlands also wouldn't surprise me, but I'm not in a position to name candidates from there.
I hope for Gladbach's sake that they don't have to start over from square one with their search. They sacked a decent coach and now it looks like they have to settle for some second or third choice candidate - Hoeneß aside maybe.