Canada's Telus brings back company veteran Entwistle as CEO

TORONTO (Reuters) - Telus Corp announced a surprise change in its leadership on Monday, with former Chief Executive Darren Entwistle stepping back in as president and CEO, a year after handing over the role to Joe Natale.

Vancouver-based Telus said it was making the change as Natale recently indicated that a move to Western Canada would not work for him and his family for some time. Telus said its board had felt the company would be best served by having its chief executive reside out west.

The appointment is effective immediately, though Telus said Natale would stay on in an executive, non-board capacity through the end of the year to ensure a smooth transition.

Despite having handed over the CEO role to Natale last May, many analysts said Entwistle, who was executive chairman at Telus, was still closely involved in the day-to-day operations. He was previously chief executive from 2000 until May 2014.

"Entwistle is well known to the Street as a strong operator with a proven track record," said Barclays 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 chair. The company said that Auchinleck and Entwistle had 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 Bell service added more than 61,000 such clients in the quarter, while market leader Rogers Communications added 24,000 after two quarters of net defections.

Telus shares fell 22 Canadian cents to C$44.35 in early trading on the Toronto Stock Exchange.

(Reporting by Euan Rocha in Toronto and Anet Josline Pinto in Bengaluru; Editing by Bernadette Baum)