JMan linked to this interview (audio clip) of Towers today and he says that they aren’t talking to the AL clubs and he’s focused on the Cubs, but that they’re looking at getting another team or two involved in the deal to get the pieces they want.  Sounds like Jake Peavy really doesn’t want to play in the AL and that leaves the Cubs on his preferred list.  Towers said he’d spend a lot of time with Hendry talking and that if they can’t get a deal done they’d revisit other teams, but didn’t think that would happen for some time. 

So, the Cubs are still definitely in on Jake Peavy and are at this point the only team the Padres are talking to.