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The deal, pending a physical, will fill the Padres' need for a left-handed pinch-hitter and designated hitter in their nine inter-league games at American League parks.
Floyd's previous team, the Tampa Bay Rays, had shown surprising interest in retaining him after signing free agent Pat Burrell to a two-year, $16 million contract.
The Rays, though, chose to pass on Floyd, valuing his leadership but knowing his playing time would be extremely limited with Burrell as their full-time DH.
After Floyd, the Padres' second choice appeared to be Luis Gonzalez, another left-handed hitting free agent. Gonzalez was scheduled to meet with Padres general manager Kevin Towers on Thursday, but that meeting will be cancelled.
Floyd batted .268 with 11 home runs and 39 RBIs in 246 at-bats with the Rays last season. His career batting average/on-base/slugging line is .279/.359/.483
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