UPDATE 1-Atos asks shareholders to turn down funds' plans

(Adds Pardus, Centaurus statement, closing share price)

By Dominique Vidalon PARIS, April 16 (Reuters) - The board of Atos Origin (ATOS.PA: Quote, Profile, Research) asked shareholders on Wednesday to vote against plans by two activist funds to nominate board members, saying it feared the funds wanted control of the French IT services firm.

A statement following a meeting by the supervisory board confirmed an earlier Reuters report that they were recommending shareholders reject the nomination of five board members at the May 22 annual meeting, setting the stage for a likely showdown at next month's AGM.

Centaurus Capital L.P. and Pardus Capital Management L.P, which together hold 21.67 percent in Atos and want a strategy review and a management shakeup, reiterated that they did not want to take control of the French company.

"We are disappointed that the board of Atos decided not to back our candidates and that it continues to deny one of its top shareholders a board representation," Centaurus and Pardus said in a joint statement released late on Wednesday.

"We have largely demonstrated our loyalty by investing in this company and we'll continue to work to improve the company's performance and create value for all parties involved."

Atos Origin shares closed 2.6 percent higher at 36.55 euros, slightly underperforming the European technology sector .

The funds have filed draft resolutions to remove Supervisory Board Chairman Didier Cherpitel and have proposed adding two of their representatives plus three independent members to the supervisory board.

Atos has proposed adding two members to its six-member supervisory board and renewing three existing members' seats.