UPDATE 5-Boston Sci CEO retires; former Zimmer chief in

* Move reunites former CEO and CFO of Zimmer

* Boston Scientific shares rise to eight-month high (Adds CEO interview, updates shares)

By Debra Sherman

CHICAGO, June 25 (Reuters) - Boston Scientific Corp (BSX.N) said its CEO is retiring and will be succeeded by Ray Elliott, former head of Zimmer Holdings Inc (ZMH.N), the world's largest maker of orthopedic devices, sending Boston Scientific shares to an eight-month high.

Elliott takes the reins of the cardiovascular device maker on July 13 as the company fends off competition in the market for heart stents and tries to rebound from recalls in its defibrillator and pacemaker business.

He succeeds James Tobin, whose 10 years at the helm of Boston Scientific was marked by the $27 billion takeover of Guidant Corp in 2006 -- an acquisition Fortune magazine called the second worst deal ever -- and the subsequent sharp decline in the company's shares.

Elliott, 59, joined Boston Scientific's board in 2007, but did not stand for reelection in March. He will now rejoin the board and also assume the title of president.

The move will reunite Elliott with Sam Leno, Boston Scientific's chief financial officer, who served under Elliott at Zimmer as CFO.

Jeff Jonas, an analyst at Gabelli & Co, called the move a "big positive," praising the performance of Elliott and Leno while at Zimmer.

The executives, "did a great job building Zimmer: marketing the products, developing new ones and raising margins -- squeezing profitability out of the business," Jonas said.

"I think they can do a great job defending market share on the stent side and then rebuilding the CRM business."

CRM refers to the cardiac rhythm management business, which includes defibrillators and pacemakers.

Elliott oversaw Zimmer's initial public offering in 2001. Today, Boston Scientific's market capitalization stands at $15 billion, while Zimmer's is $9 billion.

"For those of you who know me, you know I'm fanatical about sales and cash flow," Elliott told a conference call.

He said the sales outlook for Boston Scientific over the next couple of years was modest, but did not elaborate on his goals for accelerating sales growth.

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