* Company veteran, 44, seen as safe pair of hands
* Became CFO in 2007 after sales warning
* Replaces media-savvy Svanberg as CEO
By Mia Shanley and Sven Nordenstam
STOCKHOLM, June 25 (Reuters) - The odds on Hans Vestberg grabbing the top job at Ericsson shortened dramatically in 2007 following a shock sales warning at the firm he joined straight from university.
Vestberg, who was promoted to chief executive on Thursday, played a leading role in restoring investor confidence after that debacle, which blindsided analysts and sent Ericsson's share price tumbling.
His actions then helped cement a reputation as a safe pair of hands, carved out since 1991 when he joined the world's biggest mobile network maker aged 26.
Vestberg will replace Carl-Henric Svanberg, who is leaving to become chairman of BP in January.
He joined the Ericsson board in 2003 and became chief financial officer after its 2007 troubles, having served the firm in a wide variety of roles and locations, from China to Brazil.
Choosing a successor from within was a fairly easy task, board chairman Michael Treschow told a news conference.
"I felt pretty confident that the succession this time would be within Ericsson," he said. "That was a very strong and good feeling and it was also a very obvious choice."
The company has not yet selected a new CFO.
EXPERIENCE OVER CHARISMA
Vestberg still represents a big change from the media-savvy Svanberg, whose cheerful disposition and smooth-talking style has been the face of the company since 2003. Svanberg had been recruited from Assa Abloy, the world's largest lock maker.
Vestberg may lack Svanberg's charisma, analysts say, but he makes up for that with experience.
"I think Vestberg has been being groomed for this for some time," said Richard Windsor, global technology specialist at Nomura. "I think he was identified some time ago as the heir apparent."
Analysts have speculated about a change at the top of the world's biggest telecoms equipment maker since Vestberg was promoted CFO in 2007.
The company stunned investors in October that year with third-quarter results which were much weaker than expected. Then, just weeks later, it warned on its fourth-quarter sales, sending its share price tumbling further.
Analysts were caught off guard and investors were fuming, asking repeatedly why the company did not provide more warning and what was doing to address the problem. Vestberg was promoted to help repair the damage.
'A SAFE BET'
They applauded that 2007 promotion, saying transparency at the firm improved, and analysts were similarly upbeat about the latest move.
"This was a safe bet. We don't know much about the timing, but that Hans Vestberg steps up is a very good choice," said Lars Soderfjell at Alandsbanken.
Vestberg, a sports enthusiast who counts handball as one of his greatest passions, has overseen Ericsson's fast-growing services business, which could be key for future development of the company.
"He has long experience within Ericsson and has had many positions within the group. He is also well known with owners, investors and analysts," Soderfjell added.
Vestberg said he felt well-prepared for the new role and that he planned no major changes to company's strategy.
"But on the other hand, the market around us may make changes happen, and I don't know what those might be yet. But we have to be as responsive as Carl-Henric ... Of course I will have to make as many hard decisions," he told Reuters.
The global recession has slammed most industries. And although the telecoms industry has been less affected, operators have been downgrading outlooks and cutting capital expenditure.
"I just have to make sure I have a good enough team around me," Vestberg said.
(Additional reporting by Georgina Prodhan in London; editing by John Stonestreet)