UPDATE 2-Canada's Telus brings back company veteran Entwistle as CEO

(Adds analyst comment, company comment, background)
By Euan Rocha and Alastair Sharp
TORONTO, Aug 10 (Reuters) - Telus Corp T.TO announced a
surprise change in its leadership on Monday, with former Chief
Executive Officer Darren Entwistle returning as CEO of the major
Canadian telecoms company a little over a year after handing the
reins to Joe Natale.
Telus, which is based in Vancouver on Canada's West Coast,
said it made the change after Natale said he would not move to
Western Canada by 2017, sparking an "extensive review."
Natale has been working in Toronto.
Analysts were sanguine about the move even as Telus shares
dropped 1.4 percent to C$43.97.
"While the news is a surprise, we do not see any change to
the strategic direction or financial priorities of the company,"
RBC Capital Markets analyst Drew McReynolds wrote in a note.
The move comes less than two months after Telus was beaten
out by market leader Rogers Communications RCIb.TO in a
drawn-out quest to acquire struggling telecom startup
Mobilicity. ID:nL1N0ZA0WZ
Entwistle's appointment is effective immediately, but Telus
said Natale would stay on in an executive, non board capacity
through the end of the year. He has an 18-month noncompete
clause after that.
Entwistle, as executive chairman, has remained closely
involved in Telus's day-to-day operations, many analysts said,
despite stepping out of the CEO role. He had been CEO for 14
years until May 2014.
He is widely lauded for taking a C$6 billion ($4.60 billion)
plus gamble to buy cellular company Clearnet early in his tenure
to build a wireless service that is now the single-largest
revenue generator for Telus.
"Entwistle is well known to the Street as a strong operator
with a proven track record," said Barclays (LONDON:BARC) analyst Phillip Huang
in a note to clients. "Given Mr Entwistle has remained very
active in the company's operations as executive chairman, we
believe it will be a smooth transition."
Telus named Dick Auchinleck its new independent chairman.
The company said Auchinleck and Entwistle both agreed to serve
in their new capacities on a long-term basis.
On Friday, Telus announced a 5.1 percent rise in quarterly
revenue, driven by gains in wireless, Internet and television
customers.
In the second quarter, Telus added 76,000 contract wireless
customers, who typically spend much more per month for wireless
service than those who prepay. By comparison, BCE Inc's BCE.TO
Bell added more than 61,000 such customers, while Rogers added
24,000 after two quarters of net defections. ID:nL3N10I3X7
($1=$1.30 Canadian)