The Giants will sign Brad Penny, according to Jon Heyman of SI.com. They'll pay him only the pro-rated portion of the MLB minimum salary, which is only about $75k at this point.
The Giants now have a formidable rotation. Penny, Barry Zito and Jonathan Sanchez join Tim Lincecum and Matt Cain to form arguably the best rotation in baseball. The Giants, who are tied for the NL Wild Card lead, expect Randy Johnson to return as a reliever sometime in September.