He challenges you in the ways of old which translates to:
"Im calling your ass out, I challenge you, but first, let me send out all my minions and a robo-spider to kill you and I'll just keep running away when you hurt me too much.
Oh...there's no more places to run an- .....thats a nice gjallarhorn you have there....."
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Apparently "ways of old" include me shooting him with black hammer and him disintegrating into 12 strange coins.