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Yanks targeting Gagne, backing off Wigginton

So says Kat O'Brien from her Newsday blog, On the Yankees Beat:

The Yankees have had serious discussions with the Rangers about reliever Eric Gagne, two major-league sources confirmed Friday night. Gagne is closing for the Rangers but would be a setup man for Mariano Rivera if he were to come to the Yankees. If the Yankees could add Gagne, the back end of their bullpen would be hugely upgraded.

The teams have not been able to agree on a return for Gagne but can continue to haggle over players until the 4 p.m. Tuesday non-waiver trade deadline. The Rangers want pitching in return and have interest in minor-league righthanders Ian Kennedy and Jeffrey Marquez. They also like centerfielder Melky Cabrera, but the Yankees are unlikely to surrender him for Gagne.

Gagne is not as overpowering as he was for the Dodgers in 2002-04 but has been excellent in the closer's role this season. Entering Friday's play, he was 2-0 with a 2.16 ERA in 34 games and had converted 16 of 17 save opportunities. He had allowed a run in only one save situation this season and had given up only 23 hits in 33 1/3 innings, striking out 29.

The Braves and Angels are the favorites to trade for Rangers first baseman Mark Teixeira, but two major-league sources indicated that the Yankees are not completely out of that
chase. General manager Brian Cashman has remained adamant that he will not give up Hughes or Joba Chamberlain, however, which could take the Yankees out of the bidding.

The Yankees are not pursuing the Devil Rays' Ty Wigginton, a source said.