I saw this over on the Foxsports rumor mill. I hadn't seen it posted yet.

"The Angels had preliminary discussions with Cincinnati about acquiring Adam Dunn, according to a baseball source, but those talks quickly ended when the Reds requested a proven major league starting pitcher, a major league infielder preferably a second baseman and a top prospect. Those demands were considered too hefty for a player whose $13-million option for 2008 would be voided if he's traded, meaning he could become a free agent after this season. The Angels probably wouldn't even trade second baseman Howie Kendrick for Dunn straight up, according to the source".

http://www.benmaller.com/