How do companies respond to blog attacks?

Stephen Baker of BusinessWeek asks in their new technology blog :

Dinner last night in New York with folks from a big Internet ad agency. They told me about a problem. A report just came out on a blog that they say distorted their company position. If it had come out on a newspaper or magazine, they say they would call or e-mail the reporter, or maybe send a letter to the editor. But they just don’t know how to respond to a blog?

This is a very interesting question. A few ideas:
+ Blog in many places about the topic under discussion, in order to move the blogger’s comments much lower in the search engine rankings.
+ Call the blogger to discuss the issue. Don’t send him a note, both because he might blog it (exacerbating the problem) and because for calming down someone who may be angry, I think you’re much better off using the phone.
+ Make sure that your position on the issue is crystal clear on your own blog.
+ If you feel like playing hardball, threaten to sue (again, not in writing).
+ Ignore it. The web is so vast, few people will even notice.

Incidentally, Stephen Baker, Peter Burrows, Steve Hamm, Rob Hof, Jim Kerstetter, and Olga Kharif are the journalists behind the brand new blog.

UPDATE: Steve Rubel wrote a good post on Blog Crisis Communications Planning 101