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UPDATE 1-Siemens CEO Pierer to head group's telecoms/IT arm

(Adds background on telecoms units, Jung succession)

FRANKFURT, July 23 (Reuters) - The Chief Executive of German technology giant Siemens will lead the firm's troubled telecoms and information technology arm when its head retires in September, Siemens said on Wednesday.

Chief Executive Heinrich von Pierer, whose own contract runs until 2004, will provisionally run the division, made up of the fixed-line and the mobile telecoms units as well as the IT services unit, Siemens said in a statement.

Volker Jung, who headed the "Information and Communictaion" (I&C) division during a severe global downturn in spending on telecoms equipment and oversaw massive losses and thousands of job cuts, said in April he would retire by September.

Pierer's taking over the job solves a dilemma Siemens faced in replacing Jung. Both of its telecoms heads -- mobile boss Rudi Lamprecht and fixed-line chief Thomas Ganswindt -- were eyeing the job but each must first turn around his own unit, analysts say.

Siemens's quarterly results, due to be published on Thursday, is likely to show that the fixed-line unit posted an operating loss in the quarter to June, while the mobile unit probably just broke even, according to analysts polled by Reuters.

Siemens's supervisory board also appointed Juergen Radomski to its core management board on Wednesday. He is following the outgoing head of human resources Peter Pribilla, who had also announced his retirement by September.

It also appointed Johannes Feldmayer, the executive responsible for strategy planning, to its core management board.