11:02pm: Jim Salisbury backs up the idea that the Phils could receive DeRosa and the Padres could get Happ.  It’s worth noting that the Cubs could trim $5.5MM off the payroll by sending out DeRosa and using Fontenot at second base.

10:31pm: MLB.com’s Lyle Spencer says the Angels have not taken themselves out of the Peavy sweepstakes. 

Also, Tom Krasovic of the San Diego Union-Tribune supplies more info.  A third team would definitely be involved in a Cubs trade.  DeRosa could wind up a Phillie, and Michael Wuertz is a new name of interest for the Padres.  Peavy’s agent Barry Axelrod said again that Peavy will require a full no-trade clause upon a deal.  One more thing – Towers said trading Peavy could free up money for Trevor Hoffman.

9:00pm: MLB.com’s Corey Brock says the legwork on this trade "has essentially been completed."  No deal has been reached, but Towers says he’s facilitated a three or possibly four-team deal.  The third and possibly fourth teams (Orioles, Phillies) have agreed to players.  There could be some haggling remaining on players sent from the Cubs to Padres.

Brock says all Towers needs now is the go-ahead from Hendry.  Peavy, by the way, was spotted at the Meetings.

8:35pm: Jayson Stark gives his take on the Peavy-Cubs situation.  He says Hendry is dealing with restrictions due to the team’s ownership situation, despite his comments.

8:01pm: Scott Miller of CBSSports.com says Jason Marquis and Angel Guzman (among others) could end up with the Padres in the three-team deal.  The Padres could get J.A. Happ and/or Chris Coste from the Phils.  Miller adds that the Phils are known to have interest in Mark DeRosa.

6:53pm: Rosenthal says the Phillies are now in the mix as a possible third team in a Peavy trade.  Those talks are preliminary.  Rosenthal says the Cubs can’t complete a deal for Peavy until their new owner is decided.

5:33pm: Roch Kubatko says the O’s are still interested in Pie, but may only get him for Olson straight up if Olson is to be flipped to San Diego in a Peavy trade.

2:37pm: Joel Sherman learned from Towers that if he doesn’t reach an agreement on a Peavy deal with the Cubs at the Meetings, he will keep the pitcher to start the season.  The Dodgers are apparently the only other team to which Peavy has approved a trade.

Sherman adds that the Cubs "are willing to let [Peavy] keep his no-trade clause."  Not sure if Sherman is trying to say the Cubs would replace Peavy’s partial no-trade rights for 2011 and part of 2012 with full no-trade powers.

2:33pm: Kevin Towers told Ken Rosenthal he’s talking to only the Cubs about Peavy.  He expects to have a good idea on whether to drop it or move forward by the end of the Meetings.  Towers approached Ned Colletti but talks didn’t get far.

12:22pm: Jerry Crasnick says Kevin Towers and Peavy’s agent Barry Axelrod drove together for the 4.5 hour ride from San Diego to Las Vegas, but Axelrod says they only talked about Peavy for about three minutes.  Also, Axelrod brought a sweet mix CD.

11:44am: Bruce Miles of the Daily Herald says the Cubs and Padres did not talk about Peavy on Sunday but will today.  He’s heard the Padres might be concerned with Vitters’ hand/wrist.

1:14am: Gordon Wittenmyer of the Chicago Sun-Times says the Cubs first want to trade Jason Marquis and acquire their left-handed hitting outfielder before Peavy.  Wittenmyer’s sources do believe the Cubs will eventually acquire San Diego’s ace.  However, his sources say the Tom Krasovic report about a five-for-one framework being in place is exaggerated.

Wittenmyer hears that the Orioles would be willing to swap Garrett Olson for Felix Pie; the Cubs would then send Olson to the Padres in the Peavy deal.

12:54am: According to SI.com’s Jon Heyman, Padres GM Kevin Towers "envisions a way to do a [Jake Peavy] deal now only with the Cubs."  We’ve heard rumors of the Padres and Cubs trying to rope in the Orioles or Rays as a third team. 

Heyman adds that Peavy would approve a trade to Chicago "without any significant reworking of his contract or other major concessions."  Does that imply that the Cubs would not have to guarantee Peavy’s 2013 option ($22MM) or grant him a full no-trade clause?

Keep in mind that despite all the virtual ink that will be spilled on Peavy over the next four days, Jayson Stark sees "just about a zero chance" he’s dealt at the Meetings.  Still, the Cubs and Padres seem to already have a framework in place involving Sean Marshall, Kevin Hart, Josh Vitters, and maybe Ronny Cedeno.