  We present HST and UKIRT spectra and images of the 2 kpc binary quasar LBQS
0103-2753 (z=0.858). The HST images (V- and I-band) show tidal features
demonstrating that this system is a major galaxy merger in progress. A
two-color composite image brings out knots of star formation along the tidal
arc and elsewhere. The infrared spectrum shows that both objects are at the
same redshift, and that the discrepant redshift of C IV in component A is a
consequence of the BAL absorption in the spectrum of this component. LBQS
0103-2753 is one of the most closely spaced binary QSOs known, and is one of
relatively few dual AGN showing confirmed broad emission lines from both
components. While statistical studies of binary QSOs suggest that simultaneous
fueling of both black holes during a merger may be relatively rare, LBQS
0103-2753 demonstrates that such fueling can occur at high luminosity at a late
stage in the merger at nuclear spacing of only a few kpc, without severe
obscuration of the nuclei.
