The sharp falls in global stock markets in August potentially offer hedge funds that decide to bet on the outcome of merger deals a chance to make some juicy returns. A plunge in China's equity markets last month that triggered falls around the world, in theory, makes it cheaper for hedge funds to set up a so-called merger arbitrage trade. Merger arbitrage funds often aim to make money by buying shares in a company that is the target of a takeover bid in the hope they will rise towards the offer price. They also bet that the share price of...