This doesn't sound like it's going to happen
The Yankees have expressed interest in acquiring Ian Kennedy to not only improve their rotation for the rest of the season, but also next year's as well. Unfortunately, the Padres' right-hander suffered an oblique injury that, though might not require a DL stint, has kept him from starting in the last few days before the trading deadline. He's projected to start again on August 2, but a team like that Yankees, who has already been hurt by injuries to their rotation, can't afford to acquire a pitcher who might not be able to stay on the field.
It has also been said that San Diego, now without a general manager, is unsure on how to handle the situation and might just end up holding onto Kennedy. One executive who dealt with the team believed that the chances of Kennedy being moved were at 50-50. Even if they were to deal him, the group that is currently running the organization has said that "they can't leave the next GM with no rotation, so they'd need a big league starter, plus a second prospect, if they're going to move Kennedy."
With the amount of injuries that have plagued the Yankees' major league rotation, it is unlikely that they would be able to come up with a big league starter that they could actually afford to give up. Chase Whitley shouldn't really be considered a starter and though Shane Greene could be someone they could move, they actually need him to fill out the rotation along with Hiroki Kuroda, David Phelps, and Brandon McCarthy. Michael Pineda isn't due back until August and he's not someone they can rely on staying healthy the rest of the way. If that's the asking price for Ian Kennedy, technically it sounds affordable, but the Yankees just can't do it.