The Rockies are holding all of the cards in any Ubaldo deal.
1. They don't have to trade him.
2. He's under contract to them through 2014 at a reasonable rate.
When he's on, he's a great, front-end of the rotation starter and an excellent value for what he's currently paid. When he's not at his best, he's still a 3rd/4th starter making 3rd/4th starter money. As of this moment, he's the best starting pitcher on the market where several teams are looking for starting pitching. Rockies are aiming high right now, probably hoping someone will panic and overpay. If I'm the Yankees, I don't do the Montero + Nova + Betances + Banuelos deal either unless they get more from the Rockies than just Ubaldo (add in perhaps Wigginton and Betancourt). One more thing to remember: Ubaldo pitches half of his games in Coors Field, not exactly a pitcher friendly environment.