Seahawk To Replace Fairpoint On S&P SmallCap 600

NEW YORK (AP) — Seahawk Drilling Inc. will replace Fairpoint Communications Inc. in the S&P SmallCap 600 index next week, Standard & Poor's said Monday.

Houston-based offshore contract driller Pride Petroleum Inc. is spinning off Seahawk to its shareholders in a transaction expected to close Monday.

Fairpoint, whose shares have lost 85 percent of their value since the beginning of the year, had a market capitalization of $44 million, below the minimum $200 million required to be part of the index. Charlotte, N.C.-based FairPoint bought telephone and Internet service operations from Verizon last year, but has been plagued with customer service and system problems since.

Fairpoint shares lost 2 cents to close at 49 cents on Monday.