John Paulson , founder of hedge fund firm Paulson & Co., said high levels of corporate merger and acquisition activity "will continue for the foreseeable future."
The remarks were made Wednesday at the Delivering Alpha conference presented by CNBC and Institutional Investor.
"This is a very exciting time to be involved in merger arbitrage," Paulson said. He noted that low interest rates, record stock valuations and transactions being "accretive" were all driving such activity.
Paulson also weighed in on the Time Warner bid from 21st Century Fox that broke Wednesday.
"There's a limit to what Fox can actually pay for Time Warner" because they are about the same size, Paulson said.
On other bidders, "there's not a lot of potential acquirers." He also said there aren't any major antitrust issues with a potential merger between the two media companies.
"The question is does (Fox CEO Rupert) Murdoch come back with another bid?" Paulson said. "How high can he go?"
"We are still looking at it," Paulson said of investing in the situation. "It's exciting ... but it's not a slam-dunk as to what the outcome might be."
Paulson said his firm holds Allergan stock, which is being eyed for a possible takeover by Valeant Pharmaceuticals (Toronto Stock Exchange: VRX-CA).
"(It's) an interesting and perhaps controversial situation," Paulson said.
He said Allergan could be worth $222 per share. He said he plans to talk to Pershing Square Capital Management's Bill Ackman , another hedge fund manager playing the potential merger, about the situation.
Paulson said one of three things was likely to happen: Valeant succeeds in its bid for Allergan; Allergan buys another company; or Allergan restructures itself to create a "resolution."
-By CNBC's Lawrence Delevingne