UPDATE 2-Tyson promotes Donnie Smith to CEO

* Donnie Smith president and CEO effective immediately

* Jim Lochner named chief operating officer

* Leland Tollett will continue to assist in transition (Adds analysts' comments, share activity; changes dateline, previous CHICAGO)

NEW YORK, Nov 19 (Reuters) - Tyson Foods Inc (TSN.N) said on Thursday that company veteran Donnie Smith has become its president and chief executive officer, 10 months after the departure of the CEO of the world's largest meat company.

Smith, 50, was considered a likely candidate by some analysts, due in part to his nearly 30 years with the company, most recently as senior group vice president of poultry and prepared foods. [ID:nN21298011]

Jim Lochner, 57, whom analysts also saw as a possibility, was named chief operating officer. He had been senior group vice president of fresh meats.

"Overall this is a positive, but not surprising, step for Tyson," said J.P. Morgan analyst Ken Goldman.

He said the likelihood of Smith being named CEO was already priced into the shares, which have gained 48 percent since early January when then-CEO Dick Bond left in a surprising move [ID:nN05375385].

"But good news is still good news," Goldman said.

Tyson shares were down 0.8 percent to $12.98 in afternoon trade, outperforming the wider Standard & Poor's 500 Index .SPX, which was down 1.4 percent.

Leland Tollett, the company's former chairman and CEO, had served as interim president and CEO since Bond's departure. He will continue to assist Smith and Lochner in the transition and be available for strategic advice and support, Tyson said.

"When I was called back to help get our company back on course, I was asked how long I would be in this role. I jokingly said, 'Somewhere between three months and three years, hopefully sooner than later.' That time is now, and our company has been profitable for an extended period of time," Tollett said in a statement.

"While I'll continue to be available for advice should it be needed, the amount of time I spend on company matters will be reduced significantly going forward," he added.

Smith and Lochner are Tyson veterans, and should therefore transition smoothly to their new roles, said Stephens Inc analyst Farha Aslam.

"While the management announcement will likely alter the internal organizational structure of the company, Tyson's corporate strategy is not expected to change materially," Aslam said in a research report. (Reporting by Jessica Wohl and Martinne Geller; Editing by Lisa Von Ahn and Gerald E. McCormick)