Telefonica’s (NYSE: TEF) LE Holding Corporation, the subsidiary through which it owns 32 percent of Lycos Europe, has filed an application for an inquiry in to the “policy and conduct of business” at the once-mighty portal. The complaint was made at the Amsterdam Court of Appeal’s enterprise chamber in Lycos Europe’s native Holland. paidContent:UK understands the application complains that Lycos Europe management has not examined fully enough all options for sale of the company.

SEE ALSO: Earnings: Lycos Europe Freefalling En Route To Sell-Off

Lycos Europe, a JV with Bertelsmann, put itself up for sale in a strategic review back in April. But, though CEO and Bertelsmann family heir Christoph Mohn suggested AOL (NYSE: TWX) and German ad net Tomorrow Focus were bidding around €200 million, it’s clear the sale process is dragging; last week Lycos Europe told me: “For the moment, there are no updates to be made.” Reporting further losses this week, it said it expects to sell in the second half of this year. Dresdner Kleinwort is conducting the search.

Lycos Europe said it would review Telefonica’s request. The situation is sticky as it pits the joint majority shareholder against the CEO, who himself owns 12 percent according to Telefonica.