As Roy Greenslade's blogpost Daily Mail threatens 'abusive' blogger with libel action points out the threat of action will serve only to bring the blogger's original post to the attention of a wider audience.
I always think people in the public eye should consider PR as much as legal principle when deciding whether to sue for libel.
Also, here's a quick reminder of what libel is from the folk at useful resource, Law on the Web.
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