If I were making the decision I would offer them both arbitration, for a slightly lower amount. If the Twins want to retain the player then it does not matter who wins, you pay the man. If the Twins want to trade the player it gives you a 3 month window to do so and if the player wins arbitration and the Twins' intention is to move on they are not obligated to sign him and they simply release the man.
But what do I know, I was surprised they offered Larnauch arbitration last year and kept him on the roster for the whole season.