UPDATE 2-Eskom CEO stays, chairman quits as struggle unfolds

* CEO back at Eskom after reports he had resigned

* Govt confirms chairman resignation

(Recasts, adds govt on chairman resigning, analysts)

By Agnieszka Flak

JOHANNESBURG, Nov 9 (Reuters) - The resignation of South African power utility Eskom's chairman and return of its chief executive signalled an end to a leadership drama that erupted last week, but analysts say it could unnerve foreign investors.

Eskom Chairman Bobby Godsell had announced chief executive Jacob Maroga's resignation to the utility's staff last Thursday, but the chief executive returned to work on Monday, an Eskom spokesman confirmed. [ID:nL5014244]

In a dramatic turn of events, Godsell himself stepped down on Monday, the department of public enterprises (DPE), which oversees Eskom, said.

"Mr. Godsell has resigned. The minister received his letter this morning," said Ayanda Shezi, a spokeswoman at the DPE.

Analysts said the management crisis should have been resolved within the board, without dragging the debate across the local media and giving the impression that the crucial entity lacked the top management it needed.