Swiss wife appeals to Gaddafi to release husband

* Wife urges Gaddafi to allow return of Swiss "hostages"

* Two Swiss held since July 2008 after arrest of Gaddafi son

GENEVA, Nov 12 (Reuters) - The wife of one of two Swiss businessmen prevented from leaving Libya for 16 months has appealed to Libyan leader Muammar Gaddafi to allow the pair to return home on humanitarian grounds.

Bruna Hamdani's husband Rachid has been held in Tripoli since July 2008, following the arrest in Geneva of Gaddafi's son Hannibal and his wife for allegedly mistreating two domestic employees. The charges were later dropped.

Libya cut oil supplies to Switzerland and withdrew more than $5 billion in assets from Swiss banks after the arrests. Swiss President Hans-Rudolf Merz apologised in August and has come under pressure to resign for failing to win the men's release.

Bruna Hamdani, in an interview on Swiss television on Wednesday night, said the men expected to face charges of visa irregularities.

"I am ready to launch an appeal to the Gaddafi family ... I really appeal to their wisdom and capacity to pardon so that they return my husband," she said.

The Swiss Foreign Ministry has called for the release of Rachid Hamdani, who works for a construction company, and Max Goeldi, Libya head of the Swiss-Swedish electrical engineering conglomerate ABB (ABBN.VX). It refers to them as kidnapped.