WFAN is reporting that the Yankees had scouts on hand in Houston to watch Wandy pitch against Pittsburgh.
If you click the link, you'll find the story is mainly about the Yankees' interest in Ubaldo Jimenez. But if the Rockies screw up the process, the Yankees may turn to Wandy.
They like top Yankees catching prospect Jesus Montero, but also want young pitchers Manuel Banuelos, Dellin Betances and Ivan Nova in the package. Heyman said New York is willing to ship pitching prospects — but not any of those three.
Of course the Astros wouldn't be interested in Montero, with Jason Castro coming back in 2012, but I would imagine the Astros would ask for one or two of Banuelos, Betances, and/or Nova.
UPDATE: Treating Montero as a catcher - as you'll note in the comments - is not necessarily a given, and he could be shifted to 1B. Depending on how the Astros feel about Brett Wallace, this could complicate things.