10:09pm: The Yankees do have interest in Kennedy, but do not intend to give up both Jagielo and Clarkin for him, reports Jon Heyman of CBSSports.com (Twitter links). Heyman adds that there is “nothing hot at all” between the clubs at present.
Bowden adds (via Twitter) that a team executive informs him that Cashman has had discussions with many teams with potentially available starters.
10:02pm: The Yankees and Padres are discussing a deal that would send starter Ian Kennedy to New York in exchange for prospects Eric Jagielo and Ian Clarkin, a source tells Jim Bowden of ESPN.com (Twitter link). We heard earlier today that San Diego was disinclined to deal Kennedy unless it received an overwhelming offer.
Kennedy has been solid for the Padres this year after coming over from the Diamondbacks mid-year last season. Over 135 1/3 innings, he owns a 3.66 ERA (3.10 FIP) with 9.5 K/9, 2.8 BB.9 and a career-best 42.3 percent ground-ball rate. The 29-year-old is making $6.1MM this year and will pass through arbitration one more time before hitting the open market.
Jagielo and Clarkin were both first-round selections last year for New York. Jagielo, a third baseman, has slashed .243/.321/.470 through 209 plate appearances this year at age 22. Clarkin, meanwhile, is a 19-year-old southpaw who has pitched to a 3.36 ERA through 61 2/3 innings at low-A, notching 9.9 K/9 against 2.9 BB/9.