The Rockies are close to signing Ramon Hernandez to a two-year deal and trading Chris Iannetta to the Angels, according to Ken Rosenthal of FOX Sports (on Twitter). Tyler Chatwood should be going from the Angels to the Rockies in the deal, according to Troy Renck of the Denver Post (on Twitter). Teams are now examining medicals.
Though Hernandez is a Type A free agent, the Rockies won't surrender a draft pick to sign him, since he's a modified free agent under baseball's new collective bargaining agreement. The Reds will obtain a compensatory pick for losing Hernandez, however.
Assuming the deal goes through, it will be Dipoto's first trade as the Angels' GM. It's worth noting that he's making the move with Dan O'Dowd, who was Dipoto's GM at the end of his playing career in Colorado. Dipoto made other significant trades as Arizona's interim GM in the summer of 2010.