Ken Rosenthal has a column up on the possibility of the Yankees acquiring Mark Teixeira. He sees New York as the best fit, and suggests that the Yankees and the Rangers both should not make Philip Hughes a dealbreaker.
Rosenthal suggests that the Yanks should part with Hughes if need be, although they'd probably want to get a reliever as part of the deal (I think Joaquin Benoit would be perfect...I'd be fascinated to see how Benoit does in Yankee Stadium), and that the Rangers should be satisfied with a Melky Cabrera/Joba Chamberlain/some other prospect package.
I'd rather kick in Benoit, Gagne or Otsuka and get Hughes back than settle for a Cabrera/Chamberlain package, personally.