By Sinead Carew
May 13 (Reuters) - Verizon Wireless, the biggest U.S. mobileservice provider, said on Monday it would pay its parentsVerizon Communications and Vodafone Group Plc adividend of $7 billion in June, surprising some analysts who hadnot expected a big payout.
The dividend comes amid mounting speculation Verizon couldbuy Vodafone's stake in the venture if they can agree on aprice. Reuters reported on April 24 that Verizon was preparing a$100 billion bid for the stake but investors have said theyexpect Vodafone to seek a higher price.
The dividend decision follows recent comments from VerizonChief Executive Lowell McAdam to JP Morgan analysts that he didnot want to pay a premium for the stake and that the two ownerscould face a "lean" year in terms of the Verizon Wirelessdividend.
"I wouldn't call that lean," said Evercore analyst JonathanSchildkraut referring to the $7 billion dividend, which ispayable on June 25.
Verizon, which controls the wireless venture and dividenddecisions, declined to comment on the Verizon Wireless statementon Monday. Vodafone had no immediate comment.
Schildkraut said he was surprised by the decision as he readMcAdam's previous comments as a sign that the executive wantedto put pressure on Vodafone to agree to a deal. Schildkraut saidhe does not think Verizon has an urgent need for cash.
"Despite more contentious commentary from Verizon managementits just does not appear that withholding Verizon Wireless cashflow from Vodafone is likely to be part of the negotiation,"Schildkraut said.
The Verizon Wireless board decided on the dividend on May 9,according a filing the company made with regulators.
The wireless venture's last dividend to its parents was a$8.5 billion payout in the fourth quarter of 2012, whichfollowed with a $10 billion pay-out made in January of 2012.
Verizon had refused to sanction a dividend from the Wirelessasset between 2005 and 2011 because it said it preferred to paydown debt and make acquisitions. At the time that was seen byanalysts as a move to pressure Vodafone out of the venture.
Based on Verizon's 55 percent ownership of the venture andVodafone's 45 percent stake, the June pay-out will bring Verizoncash payments of $3.85 billion while Vodafone will receive $3.15billion, according to the company.
Verizon shares rose slightly in late trade to $53 afterclosing at $52.55 on the New York Stock Exchange.