UPDATE 1-Atos CEO could welcome activist funds on board -paper

(Adds further comment from Tribune, background, detail)

PARIS May 20 (Reuters) - The head of French software services company Atos Origin (ATOS.PA) told French newspaper La Tribune that a move whereby two activist funds could get seats on its board could help resolve a conflict over Atos' strategy.

Asked by La Tribune about a recent shareholder advisory report which said the Centaurus and Pardus funds could get three seats on the Atos board, Chairman and Chief Executive Philippe Germond replied: "I think that's a balanced solution."

Centaurus and Pardus have built up a stake of around 23 percent in Atos.

The two funds have said that a recovery plan set in place at Atos, which called off takeover talks last year and was recently making losses, is going too slowly.

The funds have also pushed for boardroom representation.

Atos Origin has said the funds want to gain a "creeping control" over the company. The funds have denied seeking full control of Atos and added they do not want to break up the group.

Germond's comments in La Tribune showed he was prepared to ease the conflict between the two parties, who are set for a showdown at Atos' annual shareholder meeting on May 22.

"Having three representatives from the funds out of 11 possible seats on the supervisory board, that creates the conditions for a peaceful dialogue," Germond said.

Germond added that Atos had not had any direct contact with Deutsche Bank (DBKGn.DE), which recently built up a 6.26 percent stake in Atos.

"They're mysterious guests," said Germond.

"We haven't had any direct contact with Deutsche Bank, neither before nor after the announcement of their entry into our capital. Our bankers have spoken to them since. But I haven't had any more feedback. We don't have any information at this stage on how they plan to vote," he said.

Atos shares closed down 1.97 percent at 38.28 euros, giving the company a stock market value of around 2.7 billion euros. (Reporting by Sudip Kar-Gupta; Editing by Elaine Hardcastle)