The short answer to your question wrench1 is yes. But, and a big BUT, the aircraft would have stalled anyway.
I have a bit of time on B747 of all types, -100, -200, -300, -SP, -400. Now this SP was behaving exactly as advertised, Nav Mode INS, ALT Hold will always give this result with a high altitude engine failure unless crew takes action fairly quickly.
I was FEO on SP but in all my time operating jets at high altitude we always knew the 3 eng alt, always. Most of us kept it updated on our notepad and some Cpt required it on the pedestal behind the TL updated half hourly.
Eng failure triggered an automatic response from the crews in my airline that we have just a few minutes before we descend.
This incident shows the crew in a very poor light. Fatigue excuses accepted but the flight crew is responsible to be able to safely operate the aircraft, if not don't go. Yes, to answer the obvious question, I have personally pulled the pin due to fatigue.