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The origin of the ferromagnetic insulating state of La7/8Sr1/8MnO3 is investigated. Based on the tight-binding model, it is shown that this state can be attributed to the Peierls instability arising from the interplay of spin and orbital ordering. The importance of the hole-orbiton-phonon intercoupling in doped manganites is revealed. This picture explains well the recent experimental finding of re-entrance of the ferromagnetic metal state at low temperatures (Phys. Rev. Lett. 96 097201)

Ferromagnetic insulator induced by Peierls instability at orbital order transition