1:18pm: Ken Rosenthal of FOX Sports reports that the Giants are the "strong favorites" to sign Penny if he clears waivers. Should the Giants sign Penny, they would pay him the pro-rated portion of the MLB minimum salary and the Red Sox would cover everything else.
10:08am: Jon Heyman of SI.com notes that the Twins are interested in Brad Penny. Twins officials did not deny that the team may claim Penny on waivers, according to Joe Christensen of the Minneapolis Star-Tribune. A number of other teams are also pursuing the big righty, but the Marlins and Giants are reportedly frontrunners. Penny could clear release waivers today, at which point he would become a free agent. Then, he'd be able to sign with the team of his choice. A team could still claim Penny off waivers, but they would have to take on his contract.
The Twins will use Francisco Liriano and Glen Perkins out of the bullpen when they return from their respective injuries, so they could use Penny in their rotation.