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I don't believe this signifies anything. At the time, Tolkien was in the habit of reusing place and personal names from the real world and from real world myths in his stories. That's where Mirkwood (an actual real world place) and many of the names in The Hobbit come from. This is just another example of the same.
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Then one appeared among us, in our own form visible, but greater and more beautiful; and he said that he had come out of pity.
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