There are a lot of rumors flying around regard of Pettitte's situation. I doubt any reporters know anything about it. There are so many reporters guessing wrong about a lot of things this off-season.
If I were Pettitte, I would make up my mind before Christmas whether I want to go back to Yankees or not. I really doubt he will keep waiting until January. After CC and AJ's signing, the market for starting pitcher should shape out nicely. If Pettitte hates the feeling of not being needed or loved, why he wants to keep waiting offers from other teams after they fail to sign their top choices in January. Pettitte should have options on hand before Christmas. One way or the other, he will make up his mind before Christmas.
Pettitte may accept Yankees' offer before Christmas and Yankees will announce it after Christmas. I also really doubt Yankees only can choose Pettitte or Teixeira because Pettitte is a short-term deal(1 or 2 year).
I also really doubt Yankees just suddenly are interested in signing Teixeira on Monday night and make up their mind without considering all the options on hand, payroll and plans. If they really only can choose Pettitte or Teixeira, they definitely will check with Pettitte's agent before making decisions on Teixeira.
One thing I know for sure. Signing Teixeira means Yankees want to win it all in 2009. This leads me to believe they will sign a verteran pitcher at one year deal as a no.4 starter and a safety net. Of course, they refer Pettitte. If Pettitte reject the offer, they will get one from free agent market.
Don't forget the Cashman's interviews I mention earlier. Yankees have their off-season plan on hand.
Cashman is a honest person. If something he doesn't want to say, he won't comment on it. He doesn't want to comment when asked there is a room financially for a big ticket bat or not. Here you go. Yankees sign Teixeira. Yankees know they have to upgrade their offense before 0ff-season. I also say all along Yankees should and will get an impact to protect A-Rod and they did. The way they did it because they want to fly under the rader and play chess game.
He not only wants to get 600 innings from free agent market but also doesn't want to sign one more multi-years contract to the other starter and block spot for youngster. He will try to get one veteran starter at one year deal as a no.4 starter. If he can't get someone to sign a one year deal which I doubt under this bad economy, he prepares to go into the season and let youngers compete for no.5 spot.