  We present a method for generating virtual observations from
smoothed-particle-hydrodynamics (SPH) simulations. This method includes stellar
population synthesis models and the reprocessing of starlight by dust to
produce realistic galaxy images. We apply this method and simulate the merging
of two identical giant Sa galaxies. The merger remnant is an elliptical galaxy.
The merger concentrates the gas content of the two galaxies into the nuclear
region. The gas that flows into the nuclear region refuels the central black
holes of the merging galaxies. We follow the refuelling of the black holes
during the merger semi-analytically.
  In the simulation presented in this article, the black holes grow from 3 x
10^7 to 1.8X 10^8 Solar masses, with a peak AGN luminosity of M_B ~ -23.7. We
study how the morphological and spectral properties of the system evolve during
the merger and work out the predictions of this scenario for the properties of
host galaxies during the active phase. The peak of AGN activity coincides with
the merging of the two galactic nuclei and occurs at a stage when the remnant
looks like a lenticular galaxy. The simulation predicts the formation of a
circumnuclear starburst ring/dusty torus with an opening angle of 30-40 degrees
and made of clouds with n_H=10^24 cm^-2. The average optical depth of the torus
is quite high, but the obscuring medium is patchy, so that there still exist
lines of sight where the AGN is visible in a nearly edge-on view. For the same
reason, there are lines of sight where the AGN is completely obscured in the
face-on view.
