Overstapveiling

Overstapveiling is a term used in Dutch auction practice to denote a transitional auction mechanism that facilitates the switch from one regime, set of assets, or contractual framework to another. The word combines overstap (switch, transition) and veiling (auction). It is typically employed in situations where market participants, licenses, or portfolios are being reorganized and an orderly process for price discovery and allocation is needed during the transition period.

In a typical overstapveiling, an auction is conducted after a formal decision to transition has been announced. Bidders submit offers based on the assets or contracts that will continue under the new regime. The auction authority or organizer determines which bids are accepted, allocates the rights or ownership, and specifies the date on which transfers take effect. The aim is to minimize disruption, ensure fair value, and provide a transparent framework for the change.

Common domains for overstapveiling include corporate restructurings such as asset spin-offs or unbundling, privatization or privatization-like transitions of public assets, and reforms in sectors like energy or telecommunications where licenses or contracts are reassigned during a market overhaul. Variants may use sealed bids or ascending formats, often with reserve prices and post-auction adjustments to reflect staged handovers.

Critics point to potential complexity and regulatory dependence, while proponents emphasize clearer price discovery and smoother transitions. See also: auction, price discovery, market reform, transition planning.