This is the most asinine thing I've ever heard. In no way would this deal make sense, the Reds are trying to move Phillips to free up money so why would they take on another huge contract in Matt Kemp? Not to mention that this would be a terrible deal for the Reds. You never give up quality pitching for a position player, especially one that has the injury history that Kemp does. Ask the Angels how loading up on position players has worked out for them lately. Walt is too smart for this, he understands that trades aren't about making a splash or winning the press conference but actually making your team better. Especially in a small market situation where you have to be careful how you spend your money. That's why he makes moves like the Latos trade where you can get a quality guy who's affordable in the near term.
You're also not taking into account that the Dodgers spent quite a bit of money this offseason to sign Cuban second baseman Alexander Guererro, so why would it make sense for them to spend 30 million on a 2nd baseman and then go out and trade for Phillips? Do people actually stop to think before they make up preposterous rumors like this?
Again I repeat, this makes zero sense. You may think you have a great source but unless your info is coming from Walt himself then it's false. This would be the worst trade in the history of trades.