The Yankees do have some interest in the right-hander.
Though they do have some interest, the Yankees are not being aggressive in their pursuit of Padres' starter Ian Kennedy, according to a baseball source close to the situation. Though reports surfaced late Thursday night about discussions about a deal that would send Kennedy to the Bronx for prospects Eric Jagielo and Ian Clarkin, it seems as though that package is unlikely and that the sides are not close to any deal at this time.
As Jon Heyman of CBSSports.com reported on Tuesday, the Padres would have to be overwhelmed to move Kennedy, who is under team control for next season. The right-hander has been solid this season, posting a 3.66 ERA in 22 starts for San Diego. A package of Jagielo and Clarkin (the Yankees' fifth and seventh best prospects heading into the season, per Baseball America) could get a deal done, but it is unlikely that the Yankees would consider that scenario.
Kennedy was linked to the Angels before they acquired his ex-teammate Huston Street and has also been a name that has come up in Orioles' trade rumors over the last few days. At this point, the chances of Kennedy joining Street and new Yankee Chase Headley as ex-Padres traded this month seem to be relatively low, but things could change drastically as we approach Thursday's trade deadline.