UPDATE 1-Boston Scientific CEO Tobin to remain in post

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By Lewis Krauskopf

NEW YORK, June 3 (Reuters) - Boston Scientific Corp (BSX.N), which has struggled since its massive acquisition of Guidant Corp, said on Tuesday that Chief Executive Jim Tobin would extend his tenure and plans to remain in his post "for the foreseeable future."

The medical device maker, whose shares rose 2 percent, also said Chief Operating Officer Paul LaViolette will retire, with Tobin combining the CEO and COO roles to gain more direct access to company managers.

It also said Fred Colen had been promoted to president of its key cardiac rhythm management business, which includes the former Guidant business.

The shake-up comes as Boston Scientific struggles with slowing sales of its heart stents, while its $27 billion purchase of Guidant in 2006 has been marred by product recalls and has left the company saddled with debt. Its shares have slumped 70 percent in the past four years.

Tim Nelson, a senior health care analyst at First American Funds, said he was not surprised that Tobin was staying on to prove the moves to restructure the company and buy Guidant were the right strategic decisions.

"I always thought he wanted to stick around until he felt the company was back recovered and on the right track," Nelson said. "He wants to see it through. He's not going to go out on a down note."

However, Nelson said he was a little disappointed in the departure of LaViolette, who joined the company in 1994 and served as operating chief since 2005. LaViolette will transition his COO responsibilities to Tobin on July 1, and then serve as senior adviser until retiring at the end of the year, the company said.

"I don't see a clear operating guy underneath (LaViolette) that's going to have the full grasp of the business that he had," Nelson said.

A Boston Scientific spokesman said LaViolette was retiring because Tobin was combining the CEO and COO roles.

Over the past two years, Tobin, 63, has devoted most of his his attention to integrating Guidant, while LaViolette has managed much of the day-to-day operations for the rest of the company, Chairman Pete Nicholas said in a statement.

"The time is now right for Jim to turn his full attention and energies back to the core challenges facing the company as a whole," Nicholas said in a statement.

"We are committed to delivering innovation, profitable growth, increased shareholder value and a stronger company for the future," Nicholas said. "The board and I firmly and unanimously believe Jim is the best person to continue delivering on those commitments."

Boston Scientific shares rose 26 cents to $13.37 in late-morning trade on the New York Stock Exchange. (Editing by John Wallace)