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VerticalNet CEO Bolts to Newell Rubbermaid

TSC Staff

VerticalNet (VERT) lost its high-profile CEO only six months after landing him.

Joseph Galli is leaving the business-to-business company to become chief executive of consumer product maker Newell Rubermaid (NWL). The official announcement was made early this morning.

Galli's departure is sure to heighten doubts about VeritcalNet, which after watching its stock soar with other B2B stocks last spring, has had a tough time convincing investors it does enough business online to justify a valuation like some of its peers. Just last month, the company said it would sell its NECX unit. NECX is an electronics component brokerage that has made up the bulk of the company's revenue, but it does most of its business off-line.

VerticalNet's stock has languished. It closed on Friday at $5.31, well off its 52-week high of $148.38.

Galli joined VerticalNet last summer from e-tailer Amazon.com (AMZN), where he was president and chief operating officer. Galli worked at Amazon barely more than a year. Before joining the Internet space, Galli had worked at Black & Decker(BDK) for 19 years.