Can internal job transfers be blocked?

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gjpick

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I work in Finance for a large corporation and recently applied and interviewed for another position within the same company. I followed all the rules by informing my manager, HR of my group and even the deputy (assistant) CFO. The interview process lasted 7 business days as I first met with 3 people on Thursday, March 24th, another person on Monday, March 28th and then the Director of Finance of that group on Friday, April 1st. I was extended an offer on the following Wednesday, April 6th. I informed my current group of my intentions to accept the offer and they countered back to me with their own offer for increases responsibility and a reduction to my relocation retention period. I decided to take a few days to make my final decision. At some point during those days, the CFO of my current group called the Director of Finance of the new group and they had a discussion regarding my offer. On Monday, April 11th the offer was withdrawn. I had not officially accepted but I did inform both HR and my current group that I was planning to accept. When I questioned the CFO of my current group he admitted to having a discussion and said that they mutually agreed that it was in the best interest of the two groups that they not move forward with my internal transfer. I realize they have the right to withdrawal but is it legal for the CFO to persuade the Director of Finance of the other group to withdraw the offer.
 
There's a warning for you in all of this.
Be careful, very careful.
 
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