FRANKFURT, Aug 8 (Reuters) - Shareholders in

Thyssenkrupp are scheduled to vote on a planned

spin-off of its defence division on Friday, as a radical shift

in European spending on defence has raised expectations its

value could surge.

In response to the stance of U.S. President Donald Trump, NATO's

European members are increasing their defence budgets, which has

driven up the shares of companies in the sector.

The order book of Thyssenkrupp's division TKMS - which makes

submarines, frigates and develops mine-sweeping technologies -

has swollen to more than 18 billion euros ($21 billion) from

11.7 billion at the end of September last year.

That has in turn boosted shares of its parent, which have more

than doubled year-to-date.

Thyssenkrupp plans to spin off 49% of TKMS to its existing

shareholders while keeping the remaining stake.

The general meeting will start at 0800 GMT and a vote will

be held later in the day following an exchange between

management and investors, which include the Alfried Krupp von

Bohlen and Halbach foundation, Thyssenkrupp's largest

shareholder.

Analysts expect the spin-off and separate listing to take

place later this year, although Thyssenkrupp has yet to specify

the timing.

Last month, Berlin reached a preliminary agreement with

Thyssenkrupp that guarantees it will retain influence at TKMS as

the government seeks to keep a certain level of control over

strategic defence assets.

($1 = 0.8583 euros)